Terminations Payments - Form 11

Jimmy Bottles

Quick one.

Person who is in receipt of Sch E and Case I income hence they are registered under self assessment.

The person will receive the termination payment, with a deduction from PAYE given for either the basic exemption of SCSB.

Now, when doing this person's Form 11 later in the year, do I treat the lump sum as Sch E income ? Additionally, if I do, is there somewhere to enter the deduction given with either the basic exemption, increased exemption or SCSB or do I just show the lump sum net of the deduction.

Thanks.

nompere

You'll be using lines 216 and 217 on page 9 of a 2011 Form 11.

http://www.revenue.ie/en/tax/it/tax-return-forms.html

Put in all the income.

If you file before 31 August Revenue will do the sums for you. I think it's a bit much to expect the average taxpayer to work out his own TSR.

Jimmy Bottles

Can I simply do the sums myself for top slicing relief and enter the figure as a credit on the Form 11 with the relief being claimed as part of the persons overall Income Tax return ?

I've read elsewhere you can also send in the last 3 years of P60s along with the other information needed but in this case, the refund with obviously made to the person seperate to the Form 11 tax return. In this case I'd leave the top slicing relief out of the form ?

Shane732

The taxable portion of the termination payment should be included on the individuals P45 received from the company.

In relation to TSR relief there is a specific section of the form which you can complete in relation to the relief.

You'll normally get a verification letter out in relation to the TSR calculation.