Top Slicing Relief Query

franco25

Hi

I have a query - I was made Redundancy late last year with 50K - For past 3 years I submitted P60s - average 35-40K each year. After applying for Top Slicing Relief I was informed I would receive roughly 4K - however I was sent cheque for €200 - is something obviously wrong here?

gerrybbadd

Who informed you you'd get so much?

The top Slicing Relief ensures your taxable redundancy payment is not taxed at a rate higher than the average of the previous 3 years tax.

Your redundancy was 50k. How much of that was taxable, (ex gratia) and what exemptions were used against the lump sum payment?

franco25

The company actually hired in an expert to go through this with us - he did out the calculations and said sent this is 1st of Jan.

So say Total Gross was 50K with ex gratia payment of 35K?

gerrybbadd

franco25 wrote: »

The company actually hired in an expert to go through this with us - he did out the calculations and said sent this is 1st of Jan.

So say Total Gross was 50K with ex gratia payment of 35K?

Have you an idea as to what tax exemptions were applied against the 35K?

nompere

I've been involved in a couple of cases where the Revenue refunded some tax based on ordinary tax principles in the first place.

They reviewed the calculation of the lump sum with the employer at the same time, and once they were satisfied that it was in order they made a second repayment based on the top slicing relief calculation.

So don't panic yet, OP.

franco25

Okay what it now says is Tax Refund - Universal Social Charge? are these in anyway related.

barneystinson

franco25 wrote: »

Okay what it now says is Tax Refund - Universal Social Charge? are these in anyway related.

Well thats your explanation right there - USC is separate from income tax and this amount has nothing to do with your top slicing relief.

franco25

great stuff - thanks for that!