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This article applies to:

  • Product: Digita Personal Business and Trust Tax

Enter redundancy, other compensation, or ex gratia amounts in Personal Tax

  1. Select
    Edit
    , then
    Schedule Editor
    .
  2. Select the
    Employment
     schedule.
  3. Select the
    Compensation
     tab.
  4. Enter the total amount received in the
    Total lump sums, benefits, contributions
     row.
  5. If any of the total amount relates to contractual entitlements or non-approved retirement benefits, enter the amounts in the relevant rows.
  6. In the
    General Exemption
     row, enter the amount up to £30,000, if required.
    important
    If the amount received is below £30,000, limit the general exemption to the amount received.
  7. If any other exemptions apply, enter them in the relevant row.
  8. Select
    OK
     to save your changes.
The exempt amount will be shown on the Additional Information pages (page Ai2, box ASE9). Any amount greater than the exemption will be shown in box ASE5 on the same page.
note
HMRC Special 18 applies where a taxpayer has more than one lump sum from different employers. It allows the taxpayer to claim up to the £30,000 exemption for each employer. However, box ASE9 only allows amounts equal to or lower than £30,000. As a workaround, Personal, Business and Trust Tax leaves box ASE9 empty and adds the number of lump sums and amount of the exemption to FIN19 on page TR7 of the main tax return.