PFT1

I recently received £30,000 tax free as part of a settlement agreement with my ex employer. For tax band and childcare purposes does this amount get deducted from my total pay therefore reducing my adjusted net income?

Hi, I recently signed a settlement agreement with my employer. The settlement figure meant my total pay in employment for 2023-2024 was £128k. This has had consequences on both my childcare account and personal tax. I expect to take a break from working until at least April 2024. I have a few questions: 1. £30000 of the settlement was "tax free". Can this amount be deducted from total pay as part of net adjusted income via self assessment? It doesnt show on my P45 so I am not sure how it impacts my personal allowance. 2. If I make an additional payment into my pension prior to the end of the financial year can this be used to bring down my net adjusted income? If so how long will it take for my tax position to be clarified? I assume I will need to register for self assessment? Thank you for any comments - This has been a distressing time and although the figures I note here are high I am not normally a +£100k earner so all new territory.