Any HMRC Tax advisors on here?

Case · May 10, 2011

My wife is shortly going to lose her job as she is being laid off due to her being unable to fulfill her job due to disability. She has medical records confirming this over a period of the last few years, so that is not in doubt, and the insurers accept her position.

BUT .... Her employers seem to think that she must pay tax on her severance payment whereas everything we've researched on the HMRC website and elsewhere seems to indicate that termination of employment becuase of a disability is tax emempt.

She is sticking to her guns and is refusing to accept the pay off, at present at least, though the stress is wearing her down. The latest is that her employers are saying that they will deduct the tax but that she can then try and reclaim in back from HMRC, which sounds dodgy to me.

While we're not greedy by any means, and are happy to pay tax correctly if it's due, we don't want the tax to be paid if she shouldn't have to.

Does anyone have any constructive ( ) advice?

Thanks

Rimbeux · May 10, 2011

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