I hope to retire shortly (aged 61) after 35 years with the same employer. My employer wants to give me a gratuity of £20K. Will I have to pay full tax on this? If I do, I presume my best option would be to get my employer to make an AVC payment into my DC pension. Someone suggested redundancy to me but I think that would cost my employer a lot more than £20K due to my long service. I phoned Revenue's PAYE helpline today but they weren't able to help me. Any advice much appreciated.