Too much tax taken on final payment

[Lostoldusername]

My husband has been made redundant during the current situation.
He has received 3 months pay in lieu of notice, some holiday and his car allowance payment as one lump sum.
Consequently he has paid approx 3k more in tax than he would have done, had he received all these payments separately.
He is going to be starting his own business so will be doing a tax returnin approx 12 - 18mths time.
We need that extra money sooner than that as he is unlikely to get any work in before his notice pay runs out.
Can we/are we entitled to claim a tax refund?

He would only ever have been paid it in one lump sum, so it doesn't matter what you think you would have paid if he's had it as monthly salary - he didn't and was never going to.

The tax will work itself out at the end of the year, as it's done annually. You won't be able to get it back now. Anyway there will be other income to factor in. So he might be due to pay more tax if his self employment is profitable.

HMRC are not in the habit of giving money back when they might be owed some.

The national insurance contributions will have been a lot on a lump sum like that too, and you can't claim that back at all.

he cant claim it back now because hmrc have no eway of knowing for sure whether he is going to get another job, make a profit on self employment or not earn anything for the next three months

so he will have to wait

Actually, you can claim any overpaid tax back. You need to log in to the government gateway to amend your income details. You can request refunds there.id give it a month to ensure his employer has informed the tax office if the end of his employment.

@Comefromaway

he cant claim it back now because hmrc have no eway of knowing for sure whether he is going to get another job, make a profit on self employment or not earn anything for the next three months

so he will have to wait

If he gets a refund, any future income will all be taxed if he’s already used up his tax allowance.

Here’s the link
www.gov.uk/claim-tax-refund

Tax is cumulative. If he logs in now (as another poster on here did very recently under a very similar redundancy situation, he will be told he has not overpaid tax. In three months time if he has no further income and enters his income as you say, then he may be entitled to a refund then.

I overpaid tax last year as I changed jobs (as did DH) and neither of us could claim a refund until the end of the tax year.

The website let me fill out all the information, then at the end I got told to come back in April when the 20/21 tax year began.

Thanks all, I will contact HMRC and see what they say. Given it is unlikely he will be able to get any work in for a while, so could do with the overpayment to tide us through without the need to claim for Universal Credit or such like.
He had been there less than 2yrs so didn't get any redundancy either.

You can claim the tax back. They ask for a declaration that you wont be working agin in this tax year (but no-one checks)

I paid too much tax on a redundancy payment and am currently owed about £5k from last year.
When I first spoke to HRMC, they told me they could return it immediately if I hadn't worked or claimed any taxable benefits.
I had just applied for JSA but not received any money and was quite keen to get support to get back to work as I had been in the same job for 33 years, so was a bit clueless!
HMRC agreed that if I cancelled the JSA appointment temporarily it would be ok to give me the money but in the end I decided to carry on with the claim/support so therefore had to wait until the end of the tax year.
I still haven't received the money, so kicking myself a bit now as it's been ages!