www.fedsonline.co.uk

Vypa mate - hate to do this to ya, but a quick question about Tax.

Doing my self assessment for tax year April 2006 - April 2007.
My employment ended March 2007 and I got a settlement payment in October 2007 from that employer.

1. The settlement was a lump sum cash payment but was not compensation - it was a 'settlement payment' to stop me taking any further action against them. - Do I need to declare it?

2. If I do, do I declare it on this assessment for tax year April 06 - April 07 as thats the period of employment it relates to, or do I do it next year as the payment was received after April 2007?

Cheers mate for any help or insight

I work at the same place as Vypa

You wouldnt need to delcare it until your 07/08 return, you go by when the money is recieved, not the period that the payment is actually for.

Not sure about actually declaring it though as technically it isn't a redundancy payment nor is it a wage as such. I'd suggest ringing the SA helpline (number should be on your return or in the guide) and asking for a 'technical advisor/technician' to talk about that bit.

Nice one, cheers Simon

told you so!