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Redundancy Payment into Pension?

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ecnirp98 Posts: 58 Forumite

26 May 2016 at 5:45PM edited 26 May 2016 at 6:16PM

I am receiving my redundancy payment and last monthly pay at the end of June, so I am about to instruct my payroll department to make the payments to my pension from the June payroll, so I thought I would just check here to make sure I am not missing anything:

Redundancy payment £42,500
Po-Rata Bonus £2,200
Gross Pay in June £5,500

So in Junes Payroll I will receive around £50,200

So I am planning to instruct my companies payroll to pay £20,000 into my contribution company pension, so that means I will receive remaining £30,000 tax free in my payroll.

I have a new job that I start in July, so I do not need the extra money above the £30,000 tax free, so this seems the most tax efficient way of using the money as a 40% tax payer.

Does this sound ok?

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Redundancy Payment into Pension?

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