Tax Rebate for Redundancy

During these Covid Times , there have been redundancies on a massive scale. Here are some tips on your rights when made redundant.

You’re made redundant if you are made unemployed by your employer. If you have worked two years or more with your employer then you’re qualified for statutory redundancy pay which will be paid by your employer. The statutory redundancy pay is fixed by the government and is based upon government rules.

Now, you can also apply for tax rebates under some conditions if you are made redundant.

When Tax Rebate Will be Handled Automatically

You don’t always need to claim a tax rebate even if you’re entitled to one. There are some situations in which it will be handled automatically for you.

For example, if you claim a taxable state benefit(ie Tax Credits, Universal Tax Credit, Jobseekers Allowance) after being made redundant, any tax refund you are due will be handled automatically. This is because parts 2 and 3 of your P45 contain the information necessary for the government to see that you are owed a refund.

Similarly, if you start a new job shortly after ending your old one, your tax refund will also be processed automatically via the PAYE system with your new employer. All you need to do is hand over your P45 to your new employer in a normal way.

When to Claim Tax Rebate

If the above situations do not apply and you do not expect to either claim benefits or restart work before the end of the tax year (April 5), you should claim your tax rebate personally

You can claim back Income tax if you have been unemployed for 4 weeks or more and you don’t expect to go to work again.

In case you’re receiving or will receive other taxable income such as a work pension from your old employer before the end of the tax year then you can’t claim back Income tax.

What if My Employer Has Gone Bust

We handle cases when companies go out of business and the employees lose out on Redundancy Pay

How to apply?

If you’re made redundant then and match the above requirements then you have a good opportunity to claim back Income tax on HMRC.

You can either use our online service where you just need to fill a form and we will claim an Income tax for you as your tax agent and we’ll post a cheque out to you as soon as your claim is approved by HMRC (HMRC usually takes 14 days).

You can also claim if you have left or leaving the UK and now you’re no longer working in the UK.

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