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Self Assessment - Armed Forces Gratuity

  • 220 posts
  • # 83529

Hi Guys, I'm having a mare.
Trying to do SA for a client who has received his gratuity from the army.  Shows on his final payslip, gross pay £38000, taxable pay £218 (obviously the difference being his lump sum).  As a tax-free lump sum, does this appear on his SA anywhere or do I just leave it off, and put a note in the "any other information" section explaining the situation.  I've been googling for hours now and I'm still no nearer to an answer.
HMRC website is not very helpful at all. Cry 

  • Member
  • Practice Licence
  • 9 posts
  • # 83843

Hi Andrea,

As the lump sum is not "taxable income" I believe that it should not be shown on the tax return. There's no harm in mentioning it in the other info box though.

Ian

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