Thank you. So if the total amount is £70,000, I would get the first £30,000 tax and NI free, then the remaining £40,000 would be taxable at my normal PAYE tax rate but exempt from NI? Is that right?
I had heard that if my employer issues my P45 before the payment, I only have to pay base rate tax on the £40,000 and no NI. Is that correct or not?