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Bereavement allowance Lump sum (Non taxable £2000) has been Taxed! Bereavement allowance of partners death They died, and the widow managed to get £3000 bereavement payments This is made of 2 parts 1) Bereavement allowance, (which is weekly amounts paid weekly, upto 1 year of the death) (This is taxable) 2) Bereavement payment which is a lump sum payment of £2000 (Not taxable) £2000 the 1 time Lump sum payment (which is NOT taxable) and £1000 of weekly payments (all added up to make £1000, this IS taxable) But HMRC have sent a tax breakdown page, saying that some tax is owed on it, on the whole £3000. The £2000 shouldnt be included, as it is Non-taxable. that tax is only owed on the £1000 only Is this an HMRC mistake? Before sending them the unpaid money, should we send a letter by us, saying it is a mistake?, and that No tax is payable on the £2000 ? If a letter Is sent, how long do they usually take to send back a corrected form ? Or the Full amount should be paid, and then it should be reclaimed back as paying too much tax afterwards? Has this happened to you? how was it resolved ?? Bereavement allowance Lump sum (Non taxable £2000) has been Taxed! Bereavement allowance of partners death They died, and the widow managed to get £3000 bereavement payments This is made of 2 parts 1) Bereavement allowance, (which is weekly amounts paid weekly, upto 1 year of the death) (This is taxable) 2) Bereavement payment which is a lump sum payment of £2000 (Not taxable) £2000 the 1 time Lump sum payment (which is NOT taxable) and £1000 of weekly payments (all added up to make £1000, this IS taxable) But HMRC have sent a tax breakdown page, saying that some tax is owed on it, on the whole £3000. The £2000 shouldnt be included, as it is Non-taxable. that tax is only owed on the £1000 only Is this an HMRC mistake? Before sending them the unpaid money, should we send a letter by us, saying it is a mistake?, and that No tax is payable on the £2000 ? If a letter Is sent, how long do they usually take to send back a corrected form ? Or the Full amount should be paid, and then it should be reclaimed back as paying too much tax afterwards? Has this happened to you? how was it resolved ?? . |