Thank you for your reply.
There is part of your reply that I do not understand
"If paid into a pension fund in the 15/16 tax year when you have no income, unless your brought forward unused pension contribution levels will cover, your flexibility may be squeezed."
It is my understanding that with zero income I cannot make use of bought forward unused pension contributions from previous years since my tax free contribution limit is 100% of my income which is zero therefore only allowing me the zero income limit of £2880 allowance next year. Please confirm if my understanding is correct
I will obviously pressure my old employer to make the pension contribution before 5th April which is clearly the best option for me, but mindful that the worst case for me is that if they miss that date (because they are incompetent) then I will hit the worst case scenario of a pension contribution after 5th April with me on zero income. I may therefore be better asking them to block any pension payment and simply pay it as income since then I can still benefit from pension contributions either before 5th April (In my second private Sipp account) or after 5th April. This gives me less risk exposure if my old employer screws up.
Finally I would like to understand your assessment of the most beneficial of the 3 remaining options to me from my previous reply (reproduced below). I would also like to quantify how bad this worst case scenario might be in terms of tax exposure percentage.
"I therefore have 3 other options if they fail to complete the best option of a pension contribution before 5th April 2015.
1) Get them to pay remaining £80,000 redundancy as ordinary income in this tax year (Before 5th April)
2) Get them to pay remaining £80,000 redundancy as ordinary income in the next tax year.(After 5th April)
3) Let them pay the remaining £80,000 into my pension after 5th April 2015 (but as I have zero income this is a very bad option - I would like to know how bad this option will be to assess the worst possible case)"
Thanks in advance for your assistance,