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Taxed on redundancy from Irish company? Now working in UK

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  • 01-11-2011 2:01pm
    #1
    dxb1
    Closed Accounts Posts: 4 ✭


    Hi,

    Can anyone advise on this? I took a 2 year career break from an Irish company at the beginning of 2010. They paid us a lump sum to leave at that time. I moved to the UK and claimed all the tax back on it.

    Now, the Irish company is reluctant to have us back, but thankfully I have a job in the UK and wish to stay. The Irish company has offered voluntary redundancy. I have accepted it, and will receive another lump sum.

    Can I also claim the tax back on this on the basis that I've not lived in Ireland since 2010? Or are there different rules for this kind of thing (redundancy)?

    I'm very lucky to be in this unique situation. It's very much a "first-world problem" I know, but it'd still be nice to know if I'll get the tax back or not, if anyone can help/advise?


Comments

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    #2
    anndub
    Registered Users Posts: 505 ✭✭✭anndub


    Aren't redundancy payments tax free?


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    #3
    dxb1
    Closed Accounts Posts: 4 ✭dxb1


    Not if they're voluntary I think. The statutory element of it is tax-free, but not the lump sum. They've told us we would be taxed. I'm just querying the fact that I'm based abroad now, over a year later.


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    #4
    Slasher
    Registered Users Posts: 400 ✭✭Slasher


    anndub wrote: »
    Aren't redundancy payments tax free?

    Nope.

    http://www.revenue.ie/en/tax/it/leaflets/it21.html#section5


  • Options
    #5
    dxb1
    Closed Accounts Posts: 4 ✭dxb1


    So, once it's taxed, can I claim it back since I'm living in the UK since 2010?


  • Options
    #6
    testicle
    Closed Accounts Posts: 5,430 ✭✭✭testicle


    dxb1 wrote: »
    So, once it's taxed, can I claim it back since I'm living in the UK since 2010?

    And then you'll have to pay UK Income Tax on it?


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    #7
    dxb1
    Closed Accounts Posts: 4 ✭dxb1


    Someone mentioned that too as a possibility. If I do claim the tax back from Ireland, do I then need to 'declare' it in the UK for tax purposes?!

    I suppose I should just call Revenue and ask them. It's such a unique situation.


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