Question regarding imminent redundancy

Cmar-Ireland

Hi Folks,

First time posting in this section of Boards.

I am to be made redundant from my job on the 17th December. I've been working in a large Pharma plant for the last 18 years.

I am now worried about the upcoming budget. The redundancy package I'm getting is fairly good.

I could leave the company sooner (Friday 3rd Dec) to get out prior to the budget and any potential changes that would affect my final figure.

Just wondering what the general consensus would be on this?

Cheers

helimachoptor

Tax rises etc wont come into force until next year only vat/excise rises come into force the next day.

MidlandsM

Sorry to read of your news Cmar. If your Gut tells you to go early, do it and not regret it.

The Dole payment/stamps etc will defo be hit, so when you go to claim your stamps,you'll be hit there after Dec.

Cmar-Ireland

Yes, my gut instinct is to go early. But I had myself mentally prepared to leave on the 17th.
I think for the sake of the two weeks I should just cut and run.

gabbytheking

Here's a good one for you. I don't believe it will make any difference being let go before the december budget TBH. As mentioned above by heli Income tax changes generally don't come into effect straight away for many reasons. If part of your redundancy is a pension payment or a pension Tax free lump sum maybe it would be best to ensure its before the year end. However if its only a regular redundancy you may well be better off getting the lump sum in January. This is due to the reason that only part of your redundancy will be tax free and the other part will be P60 Wages Related. If you have a good salary topped up by a redundancy your looking at above 50% of the taxable part of your redundancy being taken(Because your Credits and Lower bands will be used up most likely by the salary).

However if you get that lump sum in January even with IT Increases and you then don't get employment for say 6 months odd you'll have firstly a nice part of your P60 redundancy tax free or at least at the lower rate of tax and you'll be much better off for the sake of a week(As your credits and lower bands will be reset in January and you'll have all your limits left). If your walking into a job or likely to get an equally well paying job very quickly this won't work. But if you expect at least a few months out of work and maybe a lower paying job in the future you'll most likely be better off!!!

Note depending on the amount of the lump sum and your age Welfare payments may well be hit by your redundancy so but I can't see them changing this.

If you are under 55 and get a redundancy payment of more than €50,000 you are disqualified from claiming Jobseeker's Benefit. The table below shows how long you may be disqualified for. The length of the disqualification is at the discretion of the deciding officer (who can take your circumstances into account). Any period of disqualification is subtracted from your total Jobseeker's Benefit entitlement. So if you are disqualified for 3 weeks (which is 18 days payment) your JB claim starts on day 19.

Quote from SW "A statutory redundancy lump sum, which under the law must be paid, is entirely tax-free. Only a payment above and beyond the statutory payment (an ex-gratia payment) is taxable, but only when it goes over a certain limit. For further information on this, callers should be referred to the Central Telephone Information Office of the Revenue Commissioners at 1890 60 50 90".

Maybe a good idea to set a fee with a tax advisor of say €250 to review your circumstance and reflect whats the best course of action in your case.

MidlandsM

this is a zombie thread.........

Mrs OBumble

MidlandsM wrote: »

this is a zombie thread.........

Well hit the report button, instead of continuing it, ffs!