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Where do I declare redundancy or severance payments?

Article ID: 2273
Last updated: 15 Jun, 2016

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.

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.
Article ID: 2273
Last updated: 15 Jun, 2016
Revision: 12
Views: 13182
This article was:  



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