The taxpayer was made redundant in April 2008. Because of her reduced financial circumstances she decided to sell her home.
She put much of her paperwork into storage including documents relating to her redundancy payment. She was under the impression tax had been deducted and the amounts would be included on her P60.
When tailoring her 2008/09 tax return she answered no to the question asking about lump sum payments from employment on the basis that the redundancy payment was salary and not other income. As a result she did not include the payment in her return.
The taxpayer also omitted a small pension payment a medical benefit and bank interest of more than £4 280. She could not explain why she left out the pension payment but said she believed the medical benefit had ceased in 2007/08.
HMRC opened an enquiry into...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.