Redundancy - payments and what gets paid to HM Gov't

[SexyDomesticatedDad]

Have got an estimated redundancy statement which is all gross figures. I know tax is payable above 30k and this would be at my marginal tax rate so I assume a worst case of paying anything over the 30k at 40%. Is NI still applicable, what rate is this for 2009 (payment would be in April 09 tax year)and how do I an approximate calculation, do the NI first then tax or vice versa? I'm also thinking of putting a lump into my pension as an AVC which I know is tax free but I'd like to see how much I'd get first so can pay off mortgage and then most into the pensions pot. Any advice?

this covers the tax/NI stuff

this will work out the tax for you - although still set to 08/09, so might not be totally accurate for 09/10

The advantage of paying into a pension is that you get tax relief at your highest rate, so for every £8k you pay in, it is topped up to £10k automatically & if you are a higher rate taxpayer you can claim another £2k back through your tax return.

Hope this helps...

BB - thanks - saves me having to work out how much I should get. The pensions stuff is attractive - I think they also owe me some back dated top ups too. Time for some detailed financial planning.