Redundancy Payment on Tax Return?

[FredBloggs]

If an employee receives a tax free amount from his employer on redundancy - ie equal to or less than his SCSB - should this be included in his tax return?

There is a section in the tax return - "Other Payments" under which it has a box to tick "If you wish to claim TSR in relation to any lump sum(s) you and your spouse received on Reundancy"
I was wondering should it be included here?

 

[mathepac]

Absolutely, in order to have the overall tax situation as well the the Top Slicing Relief regularized.

 

[Nige]

Top slicing relief only applies if you paid tax on the redundancy lump sum. If the lump sum was covered by the SCSB (and so no tax paid) I don't believe it should be included on your tax return.

 

[D4Chick]

Additional Liability for Redundancy Payment?

I'm preparing my 2010 tax return. I took redundancy at end September, got a lump sum and paid a big chunk of tax. Do I re-visit this in my Tax return? Not sure where to include, and what that means. Might I have to pay even more tax???

 

[Sunny]

I'm preparing my 2010 tax return. I took redundancy at end September, got a lump sum and paid a big chunk of tax. Do I re-visit this in my Tax return? Not sure where to include, and what that means. Might I have to pay even more tax???

You are probably entitled to top slice relief so you are probably due a refund. However, if you mean you got redundancy last month, you wont be able to claim that until the next tax year starts. The revenue wesite has a very good section on redundancy and tax if you take a look.