I’ve just received a payment from my former employers under a COT3 agreement negotiated by ACAS for me.
I always thought that COT3 payments were a lump sum and although the figure may have been reached based on certain things for example in my case holiday pay and redundancy pay they were not to be shown as such. ACAS also informed me that my payment would be tax free.
Yet I’ve just received my last pay slip from them and the payment has been grossed up so that after tax and NI it equates to the actual payment. Also the elements have been broken down on my payslip into the categories above.
Are they wrong? I’ve been trying to find some article or proof of why this is so before I approach them so any backup information would also be greatly appreciated.
I know this may seem trivial but it now looks as though I have earned more than I actually have and this could affect my tax credits.
Thank you
Helen
HelenW