The First-tier Tribunal erred in law in holding that the appellant failed to overcome the burden of displacing a discovery assessment on the basis of evidence relating to deduction from a severance payment and the discovery assessment was held to be invalid.  

The appellant left her employer (‘DTS’) in October 2010. Under a compromise agreement, she would receive a redundancy payment of £36,700 from the company. This sum would be paid in four equal monthly instalments of £9,175, the first payment being made within 14 days of receipt of the agreement and the remaining three payments at monthly intervals thereafter. 

The appellant received the following amounts into her bank account: (1) 24 November 2010 - £9,175; (2) 21 December 2010 - £9,175; (3) 24 January 2011 -