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Where do I declare redundancy or severance payments?

Article ID: 2273
Last updated: 10 Jan, 2018

If you receive a redundancy or severance payment from an employer, you need to declare it on your tax return as follows.

SimpleStep mode

  1. Go to Your Work > Lump Sums.
  2. For a payment of £30,000 or less, enter the figure in the box Compensation and lump sum exemption, up to £30,000.
  3. For a payment of £30,000 or more, enter £30,000 in the box Compensation and lump sum exemption, up to £30,000 and the excess amount over £30,000 in the box Redundancy and other lump sum and compensation payments in EXCESS of £30,000 exemption

Example: If you receive a £40,000 redundancy payment, enter £30,000 in Compensation and lump sum exemption, up to £30,000 and £10,000 in Redundancy and other lump sum and compensation payments in EXCESS of £30,000 exemption.

Please note: You will need to remove the redundancy value you have entered in the employment pages to calculate the correct tax.

HMRC Forms mode

  1. Go to Additional Information > Page 2.
  2. Enter the amount above the £30,000 exemption in box 5.
  3. Enter the tax paid in box 6.

Please note that if the redundancy amount has been included within your employment details (such as the P60 or P45), you will need to deduct this from the overall balance which you are declaring on the employment pages otherwise there will be an incorrect tax amount declared. 

Article ID: 2273
Last updated: 10 Jan, 2018
Revision: 13
Views: 18706
This article was:  


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folder Tax Return Production -> SA100 Individual Return