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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 8582
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

I've been offered a lump sum termination payment from my

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Hi I've been offered a lump sum termination payment from my income protection provider who will pay the money via payroll for the company I work for. I need to know if I can reduce the tax burden by putting the gross amount less £30k into a pension?
JA: Have you talked to a tax professional about this?
Customer: No. I don't know any
JA: Is there anything else the Accountant should know before I connect you? Rest assured that they'll be able to help you.
Customer: Is it an accountant I need? Maybe a tax specialist I should seek.
Hello and welcome to JustAnswer. I’mCustomer a UK qualified accountant. Reviewing your question and will respond to you shortly.

Please advise if the contribution will exceed the lower of

£40,000 or your annual salary

 Many thanks and 4 other Tax Specialists are ready to help you
Customer: replied 5 days ago.
Hi The lump sum is greater than £100k and higher than, my annual salary. I wish to pay all of this lump sum but £30k into a pension and make use of the last 3 years pension annual allowance. I've paid £30k into my pension since 4/2018, so I understand I can pay more to use up the allowance.

I thank you for talking with me and for accepting my answer.

I'm glad I could help you resolve this today. Please follow up here if you have any other questions.

Best wishes.