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Where Taxpayers and Advisers Meet

"People usually get this wrong"

someone
Posts:691
Joined:Mon Feb 13, 2017 10:09 am
"People usually get this wrong"

Postby someone » Sun Jul 01, 2018 12:35 pm

HMRC, if you need to put big red warnings on the self assessment saying that people usually get things wrong, then there's a problem with your form or with the linked help.

I received three redundancy payments:
30K taxable (and taxed), appears on my p45
30K tax free, not on my p45
30K taxable (and taxed), but paid three months after my p45 was issued.

So I ticked the box for the other employment income - which brought up the scary warning page.

I think I've got it right - HMRCs tax calculation is close to what I thought it should be - but I'm unsure...

Should the entire 90K appear on these pages? I only have 60K on there at present. If I add the extra 30K then do I add it to the exceptions box or remove it from the p45 box? And what should I do with the tax? I don't have a breakdown as the 30K was included on my payslip for my final month of work, plus PILON and there's only a single 'tax deducted' box.

Additionally, I get various warnings about my investment income looking too low based on my income. But clearly around 70K of last years taxable income was one off (I had no problems finding a new job at a slightly higher salary). Almost all my savings are in tax free vehicles, ISAs, premium bonds, index linked savings certificates, and my cash, perhaps foolishly, is in a no interest account.

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