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Posted Mon, 11 Dec 2023 13:56:19 GMT by
Hi, I was made redundant in Nov 2022 and received my redundancy payment in Dec 2022 with a tax code 216T M1. My redundancy payment was over £30000 and also included payment in lieu on notice. My previous employer had taken taken into account the £30000 tax relief in the final payslip and was not included in the total pay figure in my P45. The total pay figure in my P45 included the excess redundancy amount plus the payment in lieu figure. Can you confirm if I still need to fill in page AI 2, please, as the total pay figure on the Employment page already included all the taxable redundancy payment? Also, as I did not start work until August 2023, will I be due a tax refund as I was taxed under a M1 tax code? Regards
Posted Fri, 15 Dec 2023 14:17:03 GMT by HMRC Admin 25
Hi Wai-Ming,
As your employer has accounted for the relief you don't include it again.
For the current tax year, you can contact us on 0300 200 3300 to have your code updated to issue any potential repayment.
Income Tax: general enquiries
Thank you. 
Posted Sun, 31 Dec 2023 17:18:15 GMT by
Thanks Just to confirm, I don't need to complete page AI 2, just the Employment page with the figures from my P45? Regards
Posted Sun, 31 Dec 2023 23:14:59 GMT by maxb
The same happened to me - and a bunch of others over in this other thread in this forum: You may find the conversation over there useful. HMRC don't seem to be consistent about the advice they give here. You're getting different advice here to what I received from HMRC web chat. Although the employer was correct to include the PILON in the P45, I believe they were incorrect to include the excess redundancy amount, as there is a separate box on the tax return for that, which gets treated differently in the overall tax calculation - it gets allocated to the basic/higher/additional rate bands AFTER considering savings interest and dividends, unlike regular employment income, which can change the overall calculation.
Posted Tue, 09 Jan 2024 15:00:35 GMT by HMRC Admin 5
Hi Wai -Ming

Yes that is correct, just the employment page. 

Thank you

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