This can be a complicated area and we will discuss with you in detail the payments involved and any tax implications.  Any payment you receive will be split into two areas:
Contractual settlement - anything paid to you under your contractual terms will be treated as a normal payment and be subject to the usual tax and National Insurance.
Compensatory payments - this would refer to any payments made as compensation for you entering into the settlement agreement - as a rule, the first £30,000 of this termination payment is paid to you tax-free, as long as your employer is making the payment to you on what is known as an "ex gratia basis". This means that your employer has decided to make this payment opposed to it being a legal obligation.