Redundancy - can I claim back the USC I paid?

Kotek Besar

My wife and I were both made redundant from TalkTalk in October 2011. Are we entitled to reclaim any or all of the USC we paid during 2011?

relax carry on

Kotek Besar wrote: »

My wife and I were both made redundant from TalkTalk in October 2011. Are we entitled to reclaim any or all of the USC we paid during 2011?

From the Revenue FAQs on USC, the below refers to USC on redundancy payments. You may wish to check with Revenue to see if you are due any rebate with regard to your wages through the year. Just drop your local PAYE section an email asking them to review your USC payments for 2011.

1.11 Will redundancy payments be subject to the charge?
Statutory redundancy payments are exempt from the charge. Statutory redundancy payments amount to 2 weeks pay per year of service plus a bonus week subject to a maximum payment of €600 per week. In addition, ex-gratia redundancy payments in excess of the statutory redundancy amount are exempt from income tax, and therefore also the Universal Social Charge, up to certain limits. These limits are up to €10,160 plus €765 per complete year of service in excess of the statutory redundancy. This basic exemption can be further increased by up to €10,000 if the person is not a member of an occupational pension scheme. There is a lifetime tax exempt limit of €200,000 on ex-gratia payments. Any relevant emoluments paid which are in excess of these limits are subject to the Universal Social Charge. It should be noted that the charge applies after granting the statutory exemptions set out above, and after granting any additional deduction for Standard Capital Superannuation Benefit (SCSB).

http://www.revenue.ie/en/tax/usc/index.html

Eleganza

USC can be reclaimed and I'm in the process of doing it myself.
supposedly you should have a USC cert but Revenue will help you if you haven't got it.

lig

If the exemptions have been calculated for the purpose of ariving at the 'USC Taxable' income, how come there is a refund due on the USC ? What is the basis ?

I am facing redundancy in the coming months. Just loud thinking.

Lig