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Posted Mon, 08 Apr 2024 09:59:53 GMT by JoP
Hi there, I understand that £30,000 of Redundancy pay is tax free. However, if your Redundancy pay exceeds this, and you ask your employer to pay some additional money into your Pension, would that money be treated separately from the tax-free £30k? For example, if you were due £50k Redundancy pay, and you asked your employer to pay £10k into your Pension, would the result be: - £30k tax free - £10k tax-free contribution to your pension - £10k is taxed Thank you for your help!
Posted Wed, 17 Apr 2024 12:08:04 GMT by HMRC Admin 32 Response
Hi,

If the payment is taken as salary sacrifice then yes.

Thank you.

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