PILON and unpaid salary after company liquidation

Hello. I was made redundant when the company I worked for went into liquidation in May 2023. I was eventually paid a sum for redundancy from the redundancy service which is below the taxation level. I also was paid PILON, holiday pay and unpaid wages for the period during the liquidation. I was taxed at 20% on this payment as understood. I have been working freelance since July 2023 and submitted a tax return last month (May 2024) for the period to April 2024. I didn't realise I had to put the PILON etc payment onto my tax return, although it does appear in my PAYE record on my tax account. Should I amend my SA tax return? If so, where do I put it on the tax return? In my PAYE record it notes it states I am in credit by £1,700, so I requested this be repaid. Does this happen automatically? Or do I need to revise my tax return to include the payment from the redundancy service? My partner also worked for the same company and will need to complete his return shortly. Does he put the PILON etc down as a second employer? Thanks

Hi, 
Yes you need to amend the return as the PILON needs to be included. 
See SA101_Notes_2024.pdf on how to declare this. 
With regards to the redundancy payment. The letter you received with the payment will confirm whether this is taxable or not. 
If it is, you need to show it as an employment
Thank you.

Thank you, I will have to now find out how to revise my tax return for 2023-24.

Hello, I cannot find where I can put this payment on my tax return! I have read the SA101_Notes_2024.pdf – but it doesn't explain how I can amend my currently submitted return.

I just managed to get through to the Self Assessment helpline, after waiting for half an hour and connected to the PAYE helpline who transferred me. However the eventual advice given was to add my taxed payments from the Insolvency Service to my self-employment income! This must be incorrect as there is nowhere within that section of the return where I can record the tax I have paid on the three elements of Arrears of pay owed, Holiday pay accrued, and Notice worked but not paid. On a couple of other forum questions I have seen the answer was to add a second employer with their unique tax reference where you can put the amount paid and the tax deducted. These figures are already on my Personal Tax Account section of my online account. If I put them into my self employed income I am guessing I will attract tax unpaid to those figures as there is nowhere to record the tax already paid. Still very confused and wasting a lot of time. The 'adviser' I spoke to didn't seem to know and initially told me to write a postal letter to HMRC to explain my sitution, it was only when I pressed he came up with adding it to my 'gross' income. Can I get any better advice about this? Thank you, I appreciate I might be confused but that is why I am asking the questions! thanks

Hi,

Details of how to amend your Self Assessment tax return can be found at:

Self Assessment tax returns

You will declare this as PAYE income and this will allow you to show the tax paid.

Thank you.

Thank you for the reply, but I am aware of that page, but it does not answer my question. Last Monday (8 July) I wrote to HMRC Self Assessment and included the letters from the Insolvency Service. I have not yet had a reply. I will wait another week and if I get no reply will chase. My specific question is: Do record these payment from the Insolvency Service (who have their own unique PAYE ref) do I have to add a 'second' employer. As these payments did not come from my employer and were paid after the company stopped trading.

Hi .
 

We currently have a backlog of post and as your letter was only sent on 8 July, you will not receive reply for a few months. You may therefore want to call 0300 200 3300 to have this escalated . Thank you .

Thank you, but I can't understand why you are not able to advise in this forum, on how to fill in the form. I am asking whether I need to include the Insolvency Service as a second employer as they have a unique PAYE ref rather than adding the insolvency payment to my original employer as gross income. I cannot honestly add it to my self-employment income as this is not income from self-employment. Surely someone can answer this question on the forum rather than having to wait months for a reply. I imagine it is not a completely unusual question. Thanks for your time.