maxb

I just found https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm14140 which confirms it's OK to submit an amended return to include additional EIS claims ... but the deadline for amending returns dealing with 2019 is long past so that still leaves you stuck with the paper claim form.

I'm pretty sure you're stuck using the paper form - https://www.gov.uk/government/publications/enterprise-investment-scheme-income-tax-relief-hs341-self-assessment-helpsheet/hs341-enterprise-investment-scheme-income-tax-relief-2023 says "If you receive the form after you’ve sent your tax return, complete the claim form inside the EIS3 or EIS5 and send it to us." Which unfortunately sucks, as paper forms are so much less convenient :-( I'm currently waiting and hoping my last EIS3 for 2022-23 gets issued before the SA deadline, to avoid this myself.

It sounds correct - you paid the underpaid tax via PAYE during the year, but the fact that you had that underpaid tax liability still needs to be part of your Self Assessment calculation as otherwise the SA calculation would attempt to incorrectly refund the underpaid tax back to you. Think of it this way: PAYE / tax codes are a tool to spread out paying roughly the right amount of tax over the year. At the end of the year, the Self Assessment looks back over what actually happened in the entire year, and fixes up the amount of tax in cases where PAYE didn't cover all the details. The Self Assessment should include the fact you had underpaid tax to pay... But should also include the "tax paid" figure from your P60 or P45, giving you credit for what you have already paid, so that you don't pay twice.

The same happened to me - and a bunch of others over in this other thread in this forum: https://community.hmrc.gov.uk/customerforums/sa/3c693c19-878c-ee11-a81c-6045bd0e4841 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.

I reported the bug to HMRC web chat on 8th June. Since no fix has been delivered by this point, I think there is little hope of it being fixed for 2022-23 returns. The good news is that the total tax due is correct, so the return can still be submitted with no problems - it's just the details of the displayed calculation that are missing some bits. What you can do as a workaround is to TEMPORARILY modify your return to report receiving £2001 of dividends. Now the missing bits of the calculation show up - along with a very small amount of tax on dividends. You can use that calculation to understand how your tax is being calculated - just be very careful to reset the dividends section back to your real dividends before final submission!

It sounds like it wants you to go to '5. Check your return', then 'Change income' under the relevant employer heading - I see a 'Delete section' link in my own return at the bottom of that page.

I am in a roughly similar situation myself - although in my case, the part of my redundancy figure up to the £30k tax exempt limit was NOT included in my P45, but the part above £30k WAS included. To the best of my knowledge, (and according to the HMRC web chat representative I spoke to) any part of a redundancy figure appearing in the P45/P60 is a mistake on the part of the employer. Based on that web chat, when I submit my own tax return (waiting on some other documentation), I am planning to deduct the redundancy figure from my P45 value, add it back in under the relevant "Other income" boxes, and write an explanation in the "other information" box citing the web chat advice I received. By the way, since you've had redundancy figures included in a P45, you might want to double check your employer didn't over-charge you National Insurance contributions - the portion of a redundancy payment above £30k is subject to Class 1A employer's NICs but NOT Class 1 employee's NICs, somewhat unusually. Regarding your comment about not being able to separate tax on the P45 into itemized components - happily you don't have to, as there is a question in the "Other income" section "Have you left 'Tax taken off' blank because the tax is included in your Employment pages?" which lets you declare all the tax taken off in the Employment pages and none in "Other income". As if all this complication wasn't enough... it turns out there can be an actual difference in how much tax there is to pay, after moving the additional redundancy payment above £30k from the P45 figure on the employment pages of the tax return, to the "Other income". This is because of the statutory order in which difference kinds of income are taxed. In my case, I had a small amount of dividend income, which is taxed after regular employment income, but before additional redundancy lump sums. Since dividends are taxed at different rates, and have their own nil rate allowance, but still contribute to the assignment of income to basic/higher/additional rate bands, dividend income can push the additional redundancy payment into a higher tax band than it would have been at, had it been treated as ordinary employment income. (I include this in case it helps understand why the total tax due might change, just by moving the redundancy payment from one box to another.) And then... it turns out HMRC's online self assessment filing web pages have a bug in the "View your full calculation" feature ... it looks like someone made a mistake in the conditions for when to display what parts of the calculation, and the "Redundancy, lump sums, compensation etc." section is missing out from the full calculation breakdown (even though its sums are still added to the bottom line) ... unless you have dividend income that exceeds the dividend allowance (£2000 in 2022-23)! That *really* did not help, with understanding the "order of taxation" thing, nor with just wanting to confirm the sums added up right.