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Posted Mon, 17 Jul 2023 10:10:37 GMT by Elliott Justice
Hi, I have to fill in an online self assessment for 22-23. I was made redundant in May of 2022 but my statutory payment was under the £30k threshold. Upon completing the calculation part, it tells me I owe a large sum of tax. This does not make sense as I am PAYE and paid tax on all my earnings. My Pd11 from this year shows me not owing any tax. I believe I need to declare the redundancy amount that is non- taxable as feel this may have been included in my total payment under the employment section for my previous job and thinks I haven't paid enough tax? Can you advise, when entering total payment from my P60 in the 'employment field' do I deduct the non-taxable redundancy pay from this Total please?
Posted Fri, 21 Jul 2023 13:37:26 GMT by HMRC Admin 32

The first £30000.00 of the redundancy payment is tax free.  Anything over this sum is shown in box 5 of SA101, page Ai2.  The guidance advises: 

"This includes:
•    redundancy pay
•    post-employment notice pay
•    compensation for loss of office
Include the amount of taxable post-employment notice pay and the amount of the balance of the payment which is above the £30,000 exemption limit. Do not include any amount of the payment which is not taxable, either because it is specifically exempted or because it is taxable overseas and not in the UK. The amount up to the £30,000 limit goes in box 9."

Additional information notes

Additional information (2023)

Thank you.
Posted Fri, 21 Jul 2023 14:29:53 GMT by Elliott Justice
which is tax free = £12,847.50 Should I enter £26,846? (Total minus redundancy) ThanksThanks for the reply. I don't see any 'Box' numbers in the online self assessment? Can you advise if under the 'employment' section where it asks you to provide 'total pay to date' from your P45 - Do I insert that figure from the P45 minus the tax free amount of redundancy pay i.e statutory pay which is less than £30,000? Example is: * Total Pay To Date = £39,505. * Tax Paid = £12,659 * My redundancy
Posted Mon, 31 Jul 2023 10:36:15 GMT by HMRC Admin 19

When tailoring your return, tick yes to 'Did you receive any other income'. In the other income section of the return, tick the box 'Employment lump sums, compensation and deductions and certain post-employment income' and save and continue. You will find the box to show the redundancy figure over £30000 and the tax deducted.  If the redundancy figure is below £30000, you only enter the redundancy figure in the box 'Compensation and lump sums payments up to the £30,000 exemption'.  

The pay and tax figures in the employment section should only be for your employment and not include the redundancy amount.

Thank you.

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