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Tax on Redundancy payment

  • 18-07-2012 9:36pm
    #1
    Dr.Strange
    Banned (with Prison Access) Posts: 181 ✭✭


    Hi,

    I just received a redundancy payment and am surprised at the level of tax I have paid. This is my first redundancy.
    If someone who knows these things could have a look at the below and advise it would be greatly appreciated.

    pay in lieu of notice: 7,469
    holiday pay accrued: 607
    Statutory Redundancy: 11,837
    Company Severance: 13,647

    I was expecting to come away with around 30K as I thought only the pay in lieu was eligible for tax.

    I received 24,751 today.

    Does this seem correct or have I been diddled?


Comments

  • #2
    Hungrycol
    Registered Users, Registered Users 2 Posts: 2,246 ✭✭✭Hungrycol


    Seems a bit low alright. I too would expect net to be higher than €24k.

    With a Statutory payment as high as €11K I presume you have been in the job a long time, (9+ years?). Statutory is paid tax free and it's likely the Revenue determined "Basic Exemption of €10160 plus €765 for each year of service" should easily cover your Company payment of €13k.


  • #3
    Shane732
    Registered Users, Registered Users 2 Posts: 4,998 ✭✭✭Shane732


    Dr.Strange wrote: »
    Hi,

    I just received a redundancy payment and am surprised at the level of tax I have paid. This is my first redundancy.
    If someone who knows these things could have a look at the below and advise it would be greatly appreciated.

    pay in lieu of notice: 7,469
    holiday pay accrued: 607
    Statutory Redundancy: 11,837
    Company Severance: 13,647

    I was expecting to come away with around 30K as I thought only the pay in lieu was eligible for tax.

    I received 24,751 today.

    Does this seem correct or have I been diddled?

    Seems low all right.

    In relation to the pay in lieu of notice - the taxability of this depends on whether it's provided for in your contract of employment. If it's not in your contract of employment then it forms part of your company severance and you can claim the highest of the Basic Exemption, Increased Basic Exemption and SCSB relief against it.


  • #4
    Dr.Strange
    Banned (with Prison Access) Posts: 181 ✭✭Dr.Strange


    Thanks for the replys guys.

    Yes they had taxed me on the compny severance as normal.

    Probably because the payroll is based in thhe UK.

    All sorted now, just over 30K.


  • #5
    slick31
    Registered Users, Registered Users 2 Posts: 46 ✭slick31


    Hi,
    Apologies for jumping in on your thread but I'm unable to start a New Thread for some reason. Anyways... I was made redundant in April - worked in company for just over 14 years and got 5 weeks pay for each year. Can someone tell me if............
    1) I can claim Tax Back on my lump sum payment??
    2) How do I go about this??
    3) What form(s) do I need to fill out??
    4) Is there a time limit on Claiming??
    Any help would be greatly appreciated but can you keep it simple as I don't really know very much about Tax and Claiming Back. I have searched this site and googled it but can't get any answers (that I understand anyway). I have seen stuff on Top Slicing is this what I should be doing?? How would I go about this - what forms etc.????
    Thanks,
    Slick:confused:


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