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Sam
Sam, Accountant
Category: Tax
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I need help with completing my tax return in relation to a

Customer Question

Hi. I need help with completing my tax return in relation to a compensation payment for loss of office (settlement agreement). The company did not pay the first £30,000 tax free but instead instructed me to do so as part of the next tax return. I'm trying to complete the section relating to lump sum/ compensation payments but can't seem to make it clear I am seeking tax relief post the payment being made. Can you help?
Submitted: 13 days ago.
Category: Tax
Expert:  bigduckontax replied 13 days ago.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

What form and what section are you trying to complete?

Customer: replied 13 days ago.
Hello. Trying to complete section 4 - other UK income. I know the total compensation payment, and also the net payment I received but don't know where or how to signal I am seeking post payment tax relief of £30,000 which should have been paid tax free by my previous employer.
Expert:  bigduckontax replied 13 days ago.

What is Section 4, no such nomenclature is used on the SA102?

Customer: replied 13 days ago.
This is the section: This section will help you work out what figures to put in boxes 3 to 10 of the ‘Employment lump sums, compensation and deductions, certain post-employment income’ section on page Ai 2 of the Additional information pages, if you’ve received certain large payments (usually in cash and excluding pensions) or benefits from your employer or former employer.
Expert:  bigduckontax replied 13 days ago.

What form are you actually trying to complete?

Customer: replied 13 days ago.
I'm completing a standard 2017-18 self-assessment tax return not a separate form. As part of the tax return, there is a section where you indicate you have additional UK income from your employer that is separate from the P45 or P60.
Expert:  bigduckontax replied 13 days ago.

I have this form on screen and there is no such section on the SA100. What form number are you trying to complete?

Customer: replied 13 days ago.
https://www.tax.service.gov.uk/self-assessment-file/1718/ind/5239983210/return/otherIncome/emplyomentLumpSums
Expert:  bigduckontax replied 13 days ago.

I am sorry I cannot access that link without logging in

Expert:  bigduckontax replied 13 days ago.

You may have to add a note to the effect that this was a redundancy payment and incorrectly taxed.