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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5862
Experience:  FCCA FCMA CGMA ACIS
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I'm completing my personal tax return. I received a lump sum

Customer Question

Hi, I'm completing my personal tax return. I received a lump sum following the closing of my business last year having already paid all the relevant business taxes associated with the closure, do I need to put this on my return and pay additional tax on the sum?
Assistant: Which tax year are you filing for?
Customer: 17/18
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: no
Submitted: 4 months ago.
Category: Tax
Expert:  bigduckontax replied 4 months ago.

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

Yes, you do, but the first 30K of such a payment is tax-free. You need to include this payment on your annual self-assessment tax return.

I do hope that you have found my reply of assistance.

Customer: replied 4 months ago.
Hi, The closure left the business with £4500 so no tax is due as it was under 30K? How do I put this on the return and not be liable for it to be taxed?
Expert:  bigduckontax replied 4 months ago.

I would merely declare it as a note at Box 19 of the SA100.