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Posted Tue, 09 May 2023 21:10:35 GMT by Fiona
When employment tribunals award payments over a certain amount, they gross up the award to account for tax. Say for example someone was awarded compensation of £160,000, but the Employment tribunal grossed the figure up to £232,000 to account for tax. Would you declare the compensation award figure of £160,000 on the self-assessment tax return, or the grossed up figure of £232,000? Thanks
Posted Tue, 16 May 2023 11:21:36 GMT by HMRC Admin 5

You enter the gross amount of compensation, minus £30000 in box 5 of SA101, the tax deducted in box 6 and the £30000 exemption in box 9. You can find more guidance here-

Self Assessment: additional information (SA101)

Thank you.

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