Entering redundancy payments - On Line Self assessment form


Entering redundancy payments - On Line Self assessment form

Postby perseus on Mon May 17, 2010 1:51 pm

Would someone be kind aenough to help with this

I have placed the gross redundancy amount ignoring the first tax free 30k, in section 4 'Tips and other payments not on your P60' section. Is this correct?

Should this be the gross or net redundancy payment?

At the moment it is calculating a whopping great tax bill for this despite that I should receive relief through private pension payments!
perseus
 
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Joined: Sun Mar 01, 2009 9:04 pm

Re: Entering redundancy payments - On Line Self assessment form

Postby JRG on Tue May 18, 2010 1:55 am

Redundancy payments should be entered on supplementary form SA101.

Go to the HMRC web address: http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=3180
and refer to SA101 (Supplementary Pages) PDF, and the following SA101 Notes Additional Information Notes PDF.

On page 2 of the SA101 form, under "Share schemes and employment lump sums, compensation and deductions", you enter the amounts as instructed on page 15 of the SA101 Notes, for example:

1. Redundancy payment = £20,000. Box 9 = £20,000; Box 5 = blank; Box 6 = blank.

2. Redundancy payment = £40,000. Box 9 = £30,000; Box 5 = £10,000; Box 6 = £2,000 (assuming basic rate tax applied to excess).
JRG
 
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Re: Entering redundancy payments - On Line Self assessment form

Postby perseus on Tue May 18, 2010 4:09 pm

Thanks but this is the on line version.

Anyway, I phoned the IR up this morning and evidently I forgot to tick the box in part 3 titled "Did you receive any other UK income, for example, employment lump sums, share schemes, life insurance gains?" this opens another box which allows you to enter redundancy directly.

Unfortunately this makes the entries far more complex than using the P45 which combined the redundancy and salary, but it works out the same to the nearest pound!
perseus
 
Posts: 18
Joined: Sun Mar 01, 2009 9:04 pm


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