I know I am being U in asking this here but hoping there’s some tax/finance experts on here...
I was made redundant a few months ago. My company have quite a generous redundancy package. I was advised that due to HMRC changes, they scrutinise tax paid in these payments more closely lately. The advice was that the notice pay had to be included in the redundancy payment and this would be taxed. The remainder (inc the statutory part) was untaxed (I think this is up to £30k. Basically, my company have miscalculated and only paid/accounted for 5 of my 8 weeks notice. The overall figure is actually correct so I am better of from this mistake because 3 weeks of the 8 wasn’t taxed (hope that makes sense). My company are saying that they won’t pay more because they have paid the amount agreed (it was just categorised slightly incorrectly) but will help explain to tax people if they question it. I’m fine with this, and I was paid generously and exactly what had been agreed. Sooo, now I technically haven’t paid the tax on 3 weeks worth of tax what is likely to happen? If it is looked at by HMRC are they likely to just tax me on the incorrectly coded 3 weeks or the whole thing? Surely not the whole thing?