Payments after redundancy?

jellybean400

Hi all
Tax return question. Close to hitting send on this wretched thing now, but have an annoying question I can't answer.

I was made redundant in the 17-18 tax year, and received my redundancy payment during the same year, now long since filed.

I noticed that I received an additional payment of about £200 in the April of 2018 which was the following year, and I am now not sure where/if this needs to go in my tax return. I was no longer an employee of the company that made me redundant at this time, so I can't class it as a payment by an employer - in 18-19 I was fully self employed.

Can anyone please put me out of my misery and tell me what I need to do?
thanks.

Dazed_and_confused

Why can't you enter it as employment income?

Was it not paid as a result of you being employed by that company??

jellybean400

Because I'm not sure how to do it without it looking like I'm claiming to be 'employed' during a period when I was not employed. Does that make sense?

ETA remember that my employment with this company finished in the previous tax year. On a SATR you tailor the form according to whether you held any employments; in 18-19 I did not, so I have already removed the 'employment' section. There may we be another way to indicate where the payment originated, but I'm not aware of it if so.

00ec25

how you declare it depends entirely on what your ex employer described it as


presumably you got it after they gave you a P45 in 17/18, but equally presumably as far as they are concerned it was employment income, not compensation for loss of job. so it goes down as what they reported it was to HMRC - what tax did they deduct from it?

jellybean400

Yes, it would have been after the P45 was issued. The payment was less than £30k which I think is the point at which they become taxable?

Annoyingly, I did get a message about a payment from this company that had been taxed at 20% when I first logged in to do my return. But after I deleted the 'employment' section it seems to have disappeared. Unless I imagined it, i think this probably means it was already taxed, so fingers crossed.

Dazed_and_confused

You seem very confused.

You cannot just leave taxable income off your tax return just because some tax has already been deducted.

You're now saying HMRC had pre prepared your return with it as employment income. So why don't you think it is employment income?

jellybean400

Dazed_and_confused wrote: »

You seem very confused.

Oddly enough, that's why I thought it was worth posting the question. Isn't that how this works?

You cannot just leave taxable income off your tax return just because some tax has already been deducted.

Agreed...

You're now saying HMRC had pre prepared your return with it as employment income. So why don't you think it is employment income?

I didn't say it's not employment income. I said I don't know how I'm supposed to enter it as such in my return when I have also honestly answered 'no' to the question that said 'did you have any employments in 18-19'. Are you saying I should have answered 'yes' despite my most recent employment having terminated in February 2018? :wall:

Dazed_and_confused

so I can't class it as a payment by an employer

But it was a payment by an employer.

Just not one you were employed by on the day you received the payment.

Did you consider this on your previous return? If you finished work on say the 20th of the month and were paid at the end of the month how did you fill in your return for that year given you weren't an employee when you got your final payment?

I really do think you're making a mountain out if a molehill.

You have already admitted HMRC pre prepared your return with it as employment income. So if you fail to declare it as such, either by leaving it off the return or putting it down as "Other income" there's a chance HMRC will start investigating your return because as far as they're concerned you have failed to declare the income you received from that employer.