Voluntary Redundancy Pension One Off Payment

richart4 wrote: »

I am taking voluntary redundancy at the end of February. I am taking the first 30k as a tax free payment my employer will then pay the balance direct into my standard life pension. This will not go through my pay and salary sacrifice.

I have been told that as I am a higher rate tax payer I can claim a further 20% of the one off pension contribution made by my employer back via self assessment, does anyone know if this is correct for this one off payment and how this works.

Many thanks.

You say this payment will not go through your pay or salary sacrifice. Does this mean your employer will deduct tax from the payment or not?

If tax is deducted then you need to call the HMRC and tell them you made a payment to your pension net of higher rate tax. They may be unclear and think as it's a workplace pension you made the payment gross, befire tax was deducted, but explain to them it was a redundancy payment paid in net. You'll probably be asked to write in requesting the higher rate tax relief with proof of payment into the pension scheme and the tax paid. Then you'll later get a letter saying if you are due the relief and to log into your personal tax account to claim it, or you'll get a cheque.