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Where Taxpayers and Advisers Meet

Tax free lump sum deducted from tax liabilities?

Posts: 1
Joined: Thu Jun 08, 2017 10:19 am

Tax free lump sum deducted from tax liabilities?

Postby magdalena » Thu Jun 08, 2017 10:34 am


My husband was recently made redundant. He received a payout, some of it was taxable and a £1k was also offered as tax free but instead of paying that £1k to my husband his ex employer deducted it from his tax & NI liabilities on his last payslip. They said that they couldn't pay the money directly to him which is why they paid less tax on his behalf.

It doesn't make much sense to me as I have now done my husband's self assessment for 2016 2017 and he's asked to pay a shortfall of £1k in tax. As I see it, my husband never received £1k tax free money and instead the employer made him owe that amount to the HMRC. But the employer says nothing can be done and the tax underpayment has nothing to do with them. The thing is, my husband didn't draw any salary from his limited company last year so the only tax due was for this particular employment from which he was made redundant.

Can someone advice how to tackle it please? The ex employer went through restructuring and they no longer have an accounts team so we're getting nowhere trying to sort it with them.

Posts: 39
Joined: Sat Dec 10, 2016 5:01 pm

Re: Tax free lump sum deducted from tax liabilities?

Postby MichCat » Thu Jun 08, 2017 4:26 pm

This is very odd..... could you please list all of the items that show on his final payslip, so that we can check the exact calculation?

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