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Posted Fri, 20 Dec 2024 10:32:01 GMT by Dale
I am a UK resident living in the UK and have foreign employment travelling daily for work. Each year i complete a HMRC self assessment tax return to declare my foreign income. I now have the option to take voluntary redundancy from my foreign employment with a potential lump sum of £60,000. How do i declare my this redundancy pay in the online self assessment for foreign employment?
Posted Tue, 07 Jan 2025 15:23:17 GMT by HMRC Admin 19 Response
Hi,
You can see guidance here:
Tax on foreign income
Thank you.
Posted Tue, 07 Jan 2025 16:56:22 GMT by Dale
Unfortunately this guide does not give a clear direction on how to declare foreign employment lump sum as result of a redundancy payment. Within the online self assessment there is a section to declare other UK income, including an employment lump sum where you can enter the first £30,000 exemption and any payment above this. There is no such option within the Foreign Income to declare a redundancy lump sum payment. How should one proceed, do you only need to add an additional income source within foreign employment section with the total that is over the £30,000 exemption.
Posted Wed, 22 Jan 2025 12:40:54 GMT by HMRC Admin 8 Response
Hi,
Yes you need to declare the foreign income in a UK employment page also for it to be included in the calculation. this will then allow you to claim the redundancy relief in the additional information section.
Thankyou.
Posted Sun, 16 Mar 2025 19:00:45 GMT by cyrus
Hi HMRC, I'd like to confirm if foreign income received from a redundancy payment entitles to the £30,000 tax exemption mentioned in https://www.gov.uk/termination-payments-and-tax-when-you-leave-a-job/what-you-pay-tax-and-national-insurance-on#:~:text=You%20do%20not%20usually%20pay,keep%20after%20your%20employment%20ends I've gone through the "Tax on foreign income", "Foreign Note" and "Other UK Income" and the redundancy payment information can only be entered using the "Additional Information" form (https://assets.publishing.service.gov.uk/media/660152aea6c0f7bb15ef9150/SA101_2024.pdf) with the Box 9 to indicate the £30,000 tax exemption. Does this form apply to reporting foreign redundancy payment as well? Kindly advise. Thanks!!!
Posted Fri, 21 Mar 2025 07:10:42 GMT by HMRC Admin 25 Response
Hi cyrus,
Those who have worked abroad but are resident in the UK in the year their employment is terminated will be taxed in the same way as others who have not worked abroad.
You will continue to benefit from the existing £30,000 Income Tax exemption and an unlimited employee National Insurance contributions (NICs) exemption for payments associated with the termination of employment.
The rules on Income Tax and employer NICs for termination payments are aligned so that employer NICs will be payable on payments above £30,000 (which are currently only subject to Income Tax).
Thank you. 

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