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taratill
taratill, Solicitor
Category: Employment Law
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Experience:  15 years experience of advising on employment law matters
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, I took Voulentry redundancy from Monarch Aircraft Engineering

Resolved Question:

Hi, I took Voulentry redundancy from Monarch Aircraft Engineering in November 2014, I have been offered a Job at Monarch Airlines, the job has the same job title but is a newly established role within Monarch airlines and has different terms etc
My question is, Will the HMRC want to tax my redundancy payout which was just under 30K so was tax free ?
Many thanks,
Tim
Submitted: 2 years ago.
Category: Employment Law
Expert:  taratill replied 2 years ago.
taratill :

Hello my name is ***** ***** I am happy to help you today. Under s.401 - 416 of the Income Tax (Earnings and Pensions) Act 2003, genuine redundancy payments (in accordance with the Employment Rights Act ) up to £30,000 will be tax free. So long as your employer can demonstrate that at the time of the payment the redundancy was genuine then you should not have to pay tax on the payment.

taratill :

As you are taking a job back with the same job title, this may be investigated by HMRC, your employer should support your position that this should be tax free.

taratill :

If you have any further questions please do ask.

Customer: Hi,
Customer: Hi, many thanks. Does the fact that I am technicaly joining a different company make and difference? I'm pretty sure Monarch Airlines and Monarch Aircraft Engineering are separate companys. I have an email from Monarch HR stating they can confirm if was a genuine redundancy and I will not be employed in the same role.
taratill :

Yes I think that this will support your argument that it is a different position and you were entitled to receive a redundancy payment. Under those circumstances I cannot see how they can argue that tax should be paid.

taratill :

If you would like to know anything further please let me know , If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best in your new role.

Customer: Thank you for you help. Think this clears it up for me. Are you able to confirm for me if Monarch Airlines and Monarch Aircraft Engineering are different companies?
taratill :

No I don't have access to that information, I think it is likely that they are though. You can easily check this on the companies house website under company search. https://www.gov.uk/get-information-about-a-company .

taratill :

Even if they are the same company you will not have to pay back unless the original redundancy was a sham which does not seem to be the case.

Customer: Ok thanks
taratill :

no problem, please do remember to rate my answer as I am not otherwise credited for my time.

taratill, Solicitor
Category: Employment Law
Satisfied Customers: 6305
Experience: 15 years experience of advising on employment law matters
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