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TonyTax
TonyTax, Tax Consultant
Category: Tax
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I took redundancy October 2012, aged 66, and received a large

Customer Question

I took redundancy October 2012, aged 66, and received a large sum from my employer,most of which went to paying off a shortfall on an endowment mortgage.
I receive a pension from my employers and took the state pension.
My latest tax code shows -£929 for medical insurance from my employer which I had at the time.but does not show the pension from my employers.
1.Should I tell the tax office that I do not receive this medical insurance,as I am no longer employed
2.Does the tax office already now that I receive a pension from my employers.
3.Will I be liable for tax on my employers pension,or redundancy payment
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Which tax year is the tax code for? Does it not say against which source of income it is to be used? It should say that it will be used by your pension payer. Have you not worked since October 2012? When did you take your state pension? How much did you receive pre-tax in redundancy pay?
Customer: replied 2 years ago.

 


APRIL 2014 TO APRIL2015


personal allowance £10,500


other earnings or pension -£2911


medical insurance -£929


state pensions -£6526


underpayment restriction -£126


I have not worked since October 2012 I took my state pension around that time


Redundancy pay was about £80,000


 


 


 


 


 


 


 


 


 


 


 


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Expert:  TonyTax replied 2 years ago.

Thanks.

The taxable part of the redundancy pay should have been taxed either as part of your final salary payment or as a stand alone payment. If you call the tax office on the number here, you can ask for a P800 tax calculation for 2012/13 which will hopefully show that you are square for that tax year.

As for the 2014/15 tax code, you should call the tax office on the same number and ask for the private medical insurance benefit to be removed if you no longer have that. Some people continue to receive it after they leave a job. You can also ask them what the figure of £2,911 other earnings or pension and the £126 underpayment represents and if they should not be there, have them removed. You should also make sure the amended code is sent to your pension payer and not your former employer. The code you have should tell you who it is to be operated by.

You might have the tax office review your 2013/14 tax code whilst you are on the phone to them as well as have them look at your 2014/15 code and issue a P800 for 2012/13.

I hope this helps but let me know if you have any further questions.

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