Burden of proof

Rate of tax deducted from redundancy payment

The taxpayer lost her job and received a redundancy payment of £36 700. The first £30 000 was exempt from tax under ITEPA 2003 s 401 but the balance was taxable. The issue under appeal concerned whether the employer which was now in administration had taxed it at 20% or 40%. The taxpayer said 40% tax had been paid but was unable to produce documents in support.

HMRC said the end-of-year form P14 showed that tax at 20% had been deducted correctly by the employer. The taxpayer had not included the payment in her self-assessment return so HMRC had raised a discovery assessment to collect the balance owed.

The First-tier Tribunal said the onus of proof lay with the taxpayer to show that 40% tax had been paid. She requested that a witness summons be issued to the liquidator but...