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Posted Wed, 14 Dec 2022 17:20:46 GMT by NGI
Hello, I've been living permanently in the UK since 2002 and I'm Tax resident in the UK. During 21/22 tax year I received a one-off lump sum payment from my previous employer in Hungary as a royalty award as a compensation for the commercial success of the patents I invented in 1999. I have the following questions: * Where do I report this on my self assessment? I went through the foreign section pages and there is no obvious please where I can report this income. *Is this going to be counted as part of my Adjusted Income? * Are there any allowance I'm able to offset against that? Many thanks in advance
Posted Mon, 19 Dec 2022 13:07:04 GMT by HMRC Admin 18

On the supplementary page Ai2 of SA101 cover Share schemes and employment lump sums, compensation and deductions, 
certain post-employment income and patent royalty payments.  There is guidance at:

Additional information notes

Thank you.

Posted Mon, 19 Dec 2022 18:24:42 GMT by NGI
Thank you for your answer however when I report this ONE-OFF payment my tax return automatically assumes that I will get the same income next year and is asking me for payment on account for Tax on something that I will not get. Could you please advise how to avoid that payment on account for 2022/23 tax?
Posted Thu, 22 Dec 2022 10:18:59 GMT by HMRC Admin 32

You can select the option to reduce your payments on account. This is at the end of the tax return and it will ask you to input a figure, you need to put in what you think your extra tax would be.

Thank you.

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