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Posted Fri, 05 Jan 2024 17:45:16 GMT by
I am fully self-employed and have been since mid-2021. I am looking at filling in my self-assessment, but am already struggling at the first part. I received a redundancy payment from my old job last year (employment ended in 2021, but I did not receive the payment until 2022). When I opened my self-assessment, it told me that HMRC hold the following information (numbers removed): Income for REDUNDANCY PAYMENTS OFFICE Employer name: REDUNDANCY PAYMENTS OFFICE Employer's PAYE Reference: xxx Pay from REDUNDANCY PAYMENTS OFFICE - total from your P45 or P60. Enter the amount before tax taken off: xxx UK tax taken off REDUNDANCY PAYMENTS OFFICE pay: xxx Is this employment income from inside off-payroll working engagements? No I clicked the box to acknowledge that I had seen this information and continued. Now for some reason on the first page of the return, where it asks if you 'Were you an employee (or director or office holder) or agency worker in the year to 5 April 2023?', it has filled in the REDUNDANCY PAYMENT OFFICE as my employer. When I try to select 'No' for this question, I get a warning: Tailor error !Warning You cannot remove a section from within '3. Tailor your return'. Please use the 'Delete' link from within the section you wish to remove. The 'Delete' link can be found in the bottom right hand corner of the page. I am not sure what I am supposed to do here? This was a redundancy payment after an insolvency (which took a very long time to be paid out), so not employment, but it doesn't seem to let me progress. Do I leave this section in my tax return but leave a comment to say that this is not employment income but redundancy pay? Or do I delete the entire section from my SA?
Posted Thu, 11 Jan 2024 15:07:06 GMT by HMRC Admin 20
Hi Ine
You need to leave it on the return, although a redundancy payment, it is classed as employment income so you need to say yes, you were an employee/director.
Thank you.

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