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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5112
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am completing my self assessment. My employment was terminated

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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?
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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)

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Customer: replied 3 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?

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.

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