Anthony

Dear HMRC Community, I am reaching out for guidance on a specific aspect of declaring negative earnings in relation to the repayment of a bonus, which was a condition of my employment contract upon leaving my company. To set a clear example, let's say the bonus was £100,000, and given my tax bracket, it was taxed at the 45% rate, along with £2,000 of NIC. Upon my departure from the company, I was required to repay this bonus. My understanding is that adjustments to the original payment records by my employer are not permissible since those records were accurate at the time. Therefore, it seems I must declare this repayment as negative earnings via Self-Assessment. My key question centers on the criteria for these repayments to qualify as negative earnings: - Does the mere existence of a debt obligation to repay the bonus upon leaving the company suffice to declare it as negative earnings, or are there specific actions I must take beyond acknowledging the debt? Further inquiries include: - Is repaying the net amount of the bonus sufficient evidence that the bonus was effectively clawed back, or is it necessary to repay the gross amount to properly declare negative earnings? - Given the large sums involved, repaying the gross amount poses a significant challenge. How does one navigate this issue if advancing such a large amount is not feasible? I seek to ensure compliance with all relevant tax regulations and appreciate any guidance on how to proceed with declaring negative earnings related to the repayment of a bonus under these circumstances. Thank you for your support. source: https://www.gov.uk/guidance/checking-how-to-claim-a-tax-refund-for-negative-earnings