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Thanks for your question
Can you clarify that almost 10 if the 18 years was spent working abroad for the UK company - and your statement is not clear.
Also was it the latter years of the employment and when you advsie "almost" 10 years cab you clarify exactly how long it was.
How much was the total settlement payment and was it paid whilst till abroad, or had you returned back in the UK by the time it was paid.
Was any of the payment relevant to pay in lieu or holiday pay or bonuses/commission?
I can then advsie further what might be exempt along with the £30K redundancy exemption
Thanks for your response and the additional information - sadly then you missed full exemption on this payment by 1 month and can only have a proportion in additional to the £30K tax free.
This will be 119 months/216 (adjust this so its accurate) of the £120,000 (£150 less £30K exemption) = £66,111 also exempt so the taxable element will just be £53,889
HMRC may ask for prove of time abroad and this can be provided by your employer (either at the time with paperwork you retained) or now - so ask them to clarify your length of employment and allocated time abroad.
if you are completing a paper self assessment then you also need to complete an SA1010 (additional information page) and this will be entered on Page (AI) 2 share schemes, employment lump sums where you can claim the appropriate reliefs.
If you complete the online self assessment then it asks whether you had any employment lump sums, to which you fill in that appropriate section as you did
A written confirmation from your employer will be evidence enough to detail the dates you were abroad from and to within employment.
I assume you also would have advised HMRC that you were working and living abroad all these years from the date you ceased to be resident in the UK?
It was your responsibility to advsie HMRC not your employers - and if you have been completing self assessment tax returns without advising HMRC of your non residency then you cannot have the foreign relief - as this will be the first they know of your time in employment abroad, and as this relates to more than 5 years ago HMRC cannot accept amendments to tax returns prior to that date.
This will then be down to whether HMRC are willing to accept non residency for all those years which would have been a status you would needed to have proved each year (that no more than 90 days were spent back in the UK and none of them for work purposes)
I think you need to get a ruling from HMRC first before claiming this relief OR not claim the relief at this time so you can complete the self assessment but ask for a review to see if you do in fact qualify - and amend the return at a later date of they agree you are entitled to it
But I fear this may be a problem - did you advsie this in your self assessments?
No - this cannot be viewed online by you - HMRC advsie you of your status each year which starts with you ideally having completed form P85 advising this employment being taken abroad, for them to review your status, and then with the annual completion of the self assessment tax return with the employment page and also the residency page allowing them to see whether the status agreed still was in tact.
The fact your tax codes are sent abroad is not prove of status - did you actually complete the residency page each year? Or just advise in the information sheet of your days working abroad? Where did you report this information ?
Then you need to contact HMRC as to whether they took this to mean you were not resident as I fear it would not have been enough especially as they then failed to follow up asking you for more information and you do need to establish this before proceeding with a claim for foreign relief against this lump sum payment
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