Redundancy on self assessment

Equaliser12345

Hi. Wonder if anyone can help.

i received a redundancy payment in 23/24 tax year.  My P45 shows this amount with the tax I paid on it.

£30k of the sum was tax free. I have already paid tax via PAYE on the balance.

Can anyone confirm how I deal with this on my tax return?  I am assuming that I put the full amount (I.e. salary and redundancy) in the employment box.  But do I ALSO put it under lump sum received?

Or will that cause me to be taxed again?? 

Thanks!  

Nomunnofun1

Equaliser12345 said:

Hi. Wonder if anyone can help.

i received a redundancy payment in 23/24 tax year.  My P45 shows this amount with the tax I paid on it.

£30k of the sum was tax free. I have already paid tax via PAYE on the balance.

Can anyone confirm how I deal with this on my tax return?  I am assuming that I put the full amount (I.e. salary and redundancy) in the employment box.  But do I ALSO put it under lump sum received?

Or will that cause me to be taxed again?? 

Thanks!  

Quite simply you enter the details from the P45 - nothing else!

Equaliser12345

Nomunnofun1 said:

Equaliser12345 said:

Hi. Wonder if anyone can help.

i received a redundancy payment in 23/24 tax year.  My P45 shows this amount with the tax I paid on it.

£30k of the sum was tax free. I have already paid tax via PAYE on the balance.

Can anyone confirm how I deal with this on my tax return?  I am assuming that I put the full amount (I.e. salary and redundancy) in the employment box.  But do I ALSO put it under lump sum received?

Or will that cause me to be taxed again?? 

Thanks!  

Quite simply you enter the details from the P45 - nothing else!

Thanks. I’ve put that into the employment section.  But don’t I need to deal with it in the lump sum section and specify the £30k tax free amount?

Nomunnofun1

Equaliser12345 said:

Nomunnofun1 said:

Equaliser12345 said:

Hi. Wonder if anyone can help.

i received a redundancy payment in 23/24 tax year.  My P45 shows this amount with the tax I paid on it.

£30k of the sum was tax free. I have already paid tax via PAYE on the balance.

Can anyone confirm how I deal with this on my tax return?  I am assuming that I put the full amount (I.e. salary and redundancy) in the employment box.  But do I ALSO put it under lump sum received?

Or will that cause me to be taxed again?? 

Thanks!  

Quite simply you enter the details from the P45 - nothing else!

Thanks. I’ve put that into the employment section.  But don’t I need to deal with it in the lump sum section and specify the £30k tax free amount?

Yes (I stand corrected) - in box 5 enter the redundancy payment minus 30000. 

Enter 30000 in box 9. 

Why this is required when already dealt with under PAYE is beyond me. Maybe some current HMRC employee can clarify? 

https://assets.publishing.service.gov.uk/media/660152aea6c0f7bb15ef9150/SA101_2024.pdf

MetaPhysical

It is not normal PAYE in this case.  You need to enter your lump sum payment separately because not only do you not pay tax on the first 30k of the payment but you do not pay NI on ANY of the redundancy payment.
NOTE: Be careful with what is defined as the redundancy payment.  Stuff like PILON and holiday pay you may be due are tax and NI'able.  In other words, you final pay-slip will be composed of multiple items detailing the breakdown of your final payment composed of redundancy pay, normal pay to date, holiday pay etc
https://www.unbiased.co.uk/discover/tax-business/self-assessment/is-your-redundancy-pay-taxable-everything-you-need-to-know