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Posted Mon, 29 Jan 2024 11:49:27 GMT by
Hello, I have invested in 2016 as an employee in a very early stage startup I worked for £25k of my savings (it wasn't any employee shame options. It was a private investment, as I believed the company will be success). As far as I am aware, I wasn't eligible for SEIS or EIS as an employee (also not sure if the company was in these programs). I have not claimed any tax relief based on this investment and haven't done anything else regarding this investment. Mid May 2022 the company went into administration and we have received statutory redundancy pay (taxed) for May's work and holidays, notice period etc. I have started freelancing later that year. In July 2023 I have received tax refund from HMRC (must have been automatic, as I have not claimed anything) for the overpaid tax 22-23, which equals the April salary's and the redundancy's tax added up. I am trying to fill in self assessment now for 22-23 and have the below questions: 1. Is there anything I can do to to claim the capital loss based on the investment in 2016 into the company which went into administration in 2022 - or any other tax relief? If so, where do I put it? 2. Do I add up the gross salary for April and gross redundancy pay as an total income for that employer in the section "Pay from XXX - total from your P45 or P60" ? (I have not received P60, only have P45, but it doesn't include redundancy as it was statutory redundancy pay). 3. Do I then put in the section "UK tax taken off XXXX pay" the total tax I paid on the April's salary and on the redundancy pay (even so it was refunded the next tax year)? 4. Then in the section "Tax refunded and off set" do I put the tax refunded by HMRC for 22-23, even though it was refunded in the tax year 23/24? I tried to call HMRC multiple times, but the lines are busy and are disconnecting me after some time on the line. Thank you for your help!
Posted Thu, 01 Feb 2024 08:15:45 GMT by HMRC Admin 5
Hi

You would need to provide evidence of the actual investment for confirmation that it qualifies for loss relief. You can supply this after you submit the return and it can then be amended if applicable.
You will use the details from your P45 for the employment page and also declare the refund already received. You dont need to include the redundancy payment if below £30k.

Thank you

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