Redundancy pay

[t4tomo]

https://www.gov.uk/check-eligible-free-childcare-if-youre-working

https://www.gov.uk/guidance/adjusted-net-income#what-adjusted-net-income-is

remember your taxable income does not include the £30k redundancy as that is specifically non taxable income, but will include any redundancy over £30k.

you can offset any employee pension contributions made against it (even if you used the the £30k paid gross to fund it)

be careful though, if the company makes an employer contribution to your pension scheme in lieu of some of the redundancy pay you would have otherwise got, then it that cant be used as an offset (it also wont count as taxed income either though)

 

[atypical_boro]

https://www.gov.uk/check-eligible-free-childcare-if-youre-working

https://www.gov.uk/guidance/adjusted-net-income#what-adjusted-net-income-is

remember your taxable income does not include the £30k redundancy as that is specifically non taxable income, but will include any redundancy over £30k.

you can offset any employee pension contributions made against it (even if you used the the £30k paid gross to fund it)

be careful though, if the company makes an employer contribution to your pension scheme in lieu of some of the redundancy pay you would have otherwise got, then it that cant be used as an offset (it also wont count as taxed income either though)

Thanks. The bit I'm struggling with, though, is if I plan to pay most of it into my pension pot (once I've been paid it, via PAYE) can I tick the governmental box that says 'I do not expect to have a taxable income over £100k this financial year.' It all feels very tentative.

 

[t4tomo]

Thanks. The bit I'm struggling with, though, is if I plan to pay most of it into my pension pot (once I've been paid it, via PAYE) can I tick the governmental box that says 'I do not expect to have a taxable income over £100k this financial year.' It all feels very tentative.

I dont know the amounts involved, and dont expect you to share on public forum, but if you take your gross income for the relevant year, ignore any non taxable income and then deduct of the amount you pay into your pension fund as you're allowed to, then this is your "adjusted net income" per HMRC definitions. so if that is <£100k you can tick the box.