Second Redundancy

Chardee MacDennis

Does anyone know how tax is worked out on a second redundancy? cant seem to find it anywhere!

Chardee MacDennis

nobody? the revenue dept say they have nothing to do with this as do the dept for enterprise, trade and employment - they keep passing the buck!

Newaglish

Is this statutory or ex-gratia redundancy? And how long ago were you last made redundant?

I don't really know of where to find this info on the internet!

I'm fairly sure this is a Revenue issue! Just keep ringing them.

nesf

I know there was a ten year "window" for superannuation payments (ie tax free lump sums) where you could only claim one every ten years or so. The law might have changed though.

irlrobins

You should find your answer here

boffin

This is a revenue issue!!!! The amount of tax you pay depends on whether you are receiving more than the statutory payment and how long ago your first claim was.

But there are two ways to calculate
1. the basic exemption
2. top slicing relief

You need to calculate both and whichever one is of most benefit to you i.e. you pay the least amount of tax is the one that is applied.

This has all the information on how to calculate both....its form IT21 from Revenue

http://www.revenue.ie/index.htm?/leaflets/it21.htm

Chardee MacDennis

thanks!