Tax on redundancy payment

[Wolfboy]

I expect to get made redundant next year, but I undertand that I have to pay tax on any redundancy payment over �35000. Is there any way, other than by paying the excess into my pension fund, that I can minmise the tax bill?

[factor-fiction]

You pay tax on everything over the first �30,000 not �35,000. Only other way is to get the money early in the tax year. If you get �35000 then �300o0 is tax free anyway and the other �5000 is roughly your personal allowance so if you earn no more income you pay no income tax that year.
Are you retiring soon- if so paying into pension isa good move as you get tax relief and can then cash in 25% of your pension pot tax free

[buildersmate]

Good idea from Factor. I know of no other ways to avoid being taxed over the �30k.

[ethandron]

If you are retiring pay the excess over �30k into your pension fund and take a lump sum out of your pension which is tax free I believe.

[factor-fiction]

Wish I'd thought of that!