Claiming back tax on a redundancy payment

Mr. Mac

Hi Folks

Real simple question here.
The missus took voluntary redundancy in Nov 2010 and the simple maths breaks down as follows:

She received a lump sum payment of approx 50k and paid tax of approx 17k. which means her total package was worth 67k.

She has not worked since the payment was received.

My question is:

Is she entitled to claim back any of the 17k that she paid in tax last year?
If so how much (how is it calculated)

Regards
Mr. Mac

barneystinson

Mr. Mac wrote: »

Hi Folks

Real simple question here.
The missus took voluntary redundancy in Nov 2010 and the simple maths breaks down as follows:

She received a lump sum payment of approx 50k and paid tax of approx 17k. which means her total package was worth 67k.

She has not worked since the payment was received.

My question is:

Is she entitled to claim back any of the 17k that she paid in tax last year?
If so how much (how is it calculated)

Regards
Mr. Mac

Have a read of this for starters:
http://www.revenue.ie/en/tax/it/leaflets/it21.html

Then come back if you're none the wiser!

Mr. Mac

barneystinson wrote: »

Have a read of this for starters:
http://www.revenue.ie/en/tax/it/leaflets/it21.html

Then come back if you're none the wiser!

Thanks mate

Read it all and still none the wiser.
They dont make tax refunds easy!!!
Im sure shes entitled to some refund but not sure what

considering she hasnt worked for the last 12 months i thought she would have got it all back!!!!

kennyb3

2 points really:

1. Statistically speaking there is a good chance she is entitled to top slicing relief based on the high termination package. You need the prior 3 years P21's to assess together with further details of the exact make up of the redundancy package and the P45 in 2010.

2. There is a good chance he may have extra credits to claim for the end of 2010 depending on when the actual termination occured from (may only be December).

I would advise you to contact an accountant and have them take a look at the position.

relax carry on

Just send a request to your local revenue office asking for top slicing relief to be applied to 2010. If a refund is due you will get it. If not you won't. You do not need to try and work the calculations. It will not cost you anything.
You do not need an accountant to do the work that revenue will do for you. Accountants/tax advisors are great when required but are not required in this instance. If you are not satisfied with revenues calculations, then look for more assistance.

karl tyrrell

Yes she is i got redundancy in june then in may i rang the tax office and asked for number for the topslice on my redundancy they asked for a copy of my redundancy form what i was payed and taxed so i sent it in and recieved 2500 i was taxed 5000 out of 62000.top slice is some thing i never heard of till a friend told me.