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  • RE: Tax on redundancy pay

    Thank you
  • RE: Pension contribution impact on 'net adjusted income'

    Thank you
  • Tax on redundancy pay

    Hello HMRC Community, I understand that the first £30K of a redundancy package is tax-free. Three questions: 1) Is it exempt from NI as well or just exempt from the income tax? 2) Does it count towards the total income for the year? (e.g., if I were to receive £30K redundancy pay + £80K from other sources, would my net adjusted income be £110K or just £80K?) 3) I assume that any excess above £30K is treated as normal income? (i.e. subject to income tax, NI and counting towards income for a given tax year) Thank you for your help!
  • Pension contribution impact on 'net adjusted income'

    Hello HMRC Community, I would like to understand how additional/voluntary pension contributions affect the Net Adjusted Income (and therefore the Personal Allowance): suppose my total income for the year is £110,000 (this includes income from employment, interest, dividends etc.). How much extra cash would I need to pay into my pension pot to reduce my Net Adjusted Income to £100,000 in order to keep my full Personal Allowance? £10K, £8K, another amount? I thought the answer was £8K (with additional 25% [£2K] being added 'by default' at the time of making the lump sum payment). However, the example on the HMRC website suggests £10K. ( - example B.) Thank you for your help!