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Posted Tue, 21 Nov 2023 16:05:03 GMT by Charlotte
Good afternoon, My role was made redundant in Sept 2021. This was decided retrospectively by an Employment Tribunal judgment in August 2022, and I was awarded a redundancy payment, compensation for loss of notice, and arrears of unpaid wages (for June-Sept 2021). November 2022 - I received the redundancy payment from the RPS. October 2023 - I received the compensation for loss of notice, and some of the arrears of unpaid wages from the RPS. I had been unable to previously claim for these components until the company was legally insolvent. When filling out my Self Assessment, should each of these payments be included in the tax years in which they were received? The arrears of wages in particular I'm unclear whether tax and NI should be calculated on when they were received from RPS (Oct 2023) or when the wages should have originally been paid (June-Sept 2021). Thank you in advance for your help,
Posted Wed, 22 Nov 2023 14:15:36 GMT by HMRC Admin 10
You will need to show them in the year the payment was received.
You can then send in a letter asking for the payment to be reallocated to the correct years and provide evidence to support your claim for the amounts/years involved to
PAYE & Self Assessment
Posted Fri, 24 Nov 2023 12:53:51 GMT by Charlotte
Hello, Thank you for your assistance. Please could you clarify which elements would need to be reallocated to other years rather than the year payment was received i.e. is it just the arrears of wages, or the compensation in lieu of notice as well? thanks
Posted Tue, 28 Nov 2023 10:25:40 GMT by HMRC Admin 5
Hi Charlotte

Arrears of pay are earnings paid after the date when the employee should have received the salary or wages.  
To claim for arrears of pay, you will need to write to HMRC at H.M. Revenue and Customs Pay As You Earn BX9 1AS.  
You will need to state how much relates to each tax year.

Thank you

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