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Posted Fri, 06 Sep 2024 13:03:25 GMT by Marcin Lament
Hi, I was made redundant in 2023-2024 and found new employment during the same financial year. When entering income details for Employer 1, I'm unsure whether I need to declare the ex gratia payment that I received as part of the redundancy package. It was £22k, so below the allowable threshold. The "Total pay to date" section in the P45 does not include the ex gratia payment but includes salary I earned during that year, annual leave that I haven't used, and PILON. Do I need to declare the ex gratia payment anywhere in the online form, and if so, where would I need to add this as I can't see any box in the Employment 1 section that could allow me to do it? Thank you in advance
Posted Fri, 13 Sep 2024 12:37:10 GMT by HMRC Admin 13 Response
Hi
If the payment is part of a redundancy payment, the first £30000 is tax free and does not need to be included in a tax return.
The ex-employer making the payment will advise you of any taxable payments to include. 
If a redundancy payment exceeds £30000, then the excess is declared in the additional information section in the box – “Redundancy, other lump sums and compensation payments – the amount above the £30,000 exemption".  
This can be found on Additional information page on the online form.
Thank you 

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