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Tax on redundancy

  • 10-11-2011 2:35pm
    #1
    fret_wimp2
    Registered Users, Registered Users 2 Posts: 1,905 ✭✭✭


    I was made redundant earlier this year. I got a decent amount, nothing life changing, but enough to stave away a rainy day or two.I had a meeting wtih KPMG before recieving my lump sum to discuss sorting it so that i pay the least amount of tax, afterwhich i got the reduncancy into my account.I just heard someone say i still need to pay tax on this lump sum. is this true?Were any tax issues not resolved before i received the lump sum?

    im basically asking is tax always taken out before you recieve the redundancy by the employer, or do you have to sort that out yourself?


Comments

  • #2
    allthedoyles
    Registered Users, Registered Users 2 Posts: 6,893 ✭✭✭allthedoyles


    If you were on PAYE and received a P45 , the taxable portion of your lump sum should be included there .

    The statutory redundancy lump sum is always tax-free .
    Remember to apply for top-slicing relief in January 2012


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