How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask taxadvisor.uk Your Own Question
taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4972
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
54961312
Type Your Tax Question Here...
taxadvisor.uk is online now

I am completing my self assessment. My employment was terminated

Resolved Question:

I am completing my self assessment. My employment was terminated January 2013 and I received a settlement agreement. Included in my settlement agreement was an ex-gratia payment of £43,800. When completing my tax return do I simply complete it exactly as my P45 or can I insert a figure of my total pay less the ex-gratia? If so where do I put the ex-gratia payment in the on-line self assessment so as to ensure the first £30,000 is tax free?
Many thanks
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
and welcome to the site. Thank you question.

Any redundancy and other lump sums and compensation payments should be reported on supplementary page SA101 - Additional information in Box 5 to Box 9 within the section Share schemes and employment lump sums, compenastion and deductions

I am providing you a link to the notes page information here (page BAiN 3)

https://www.gov.uk/government/publications/self-assessment-additional-information-sa101



I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

Thank you. Can I reduce my total pay from that shown on my P45 by the amount of ex-gratia payment I received and enter the enter the ex-gratia payment in the supplementary pages?

Expert:  taxadvisor.uk replied 2 years ago.

Michael, thank you reply.

You can do that provided you have shown total received in the year from the employer in a combination of both employment pages and additional information pages.

I would put a note in box 19 of the main return to advise HMRC of what you have done.

I hope this is helpful.

taxadvisor.uk and other Tax Specialists are ready to help you

Related Tax Questions