redundancy tax refund query

jmorrisey

Hi I'm just seeking some advice on behalf of the missus.

She took voluntary redundancy from her job last year. Her finishing date of work was the 28th December 2013. The redundancy was paid in full at the end of December before her finish date. She was told this would be better for her from a tax refund perspective (as opposed to being paid the redundancy payment in 2014).

She is currently on jobseekers allowance.

We have three queries

A. Why, from a tax viewpoint, would it have been better to receive the redundancy payment in 2013 (while still in employment) rather than this year

B. The salary and tax details on her p45 does not include the redundancy payment. Can she use her p45 for the purposes of claiming tax back?

C. Somebody mentioned that she could claim some of the tax she payed on the redundancy payment back. Does anyone know how she would go about this?

Many thanks in advance for any advice

CIARAN_BOYLE

jmorrisey wrote: »

Hi I'm just seeking some advice on behalf of the missus.

She took voluntary redundancy from her job last year. Her finishing date of work was the 28th December 2013. The redundancy was paid in full at the end of December before her finish date. She was told this would be better for her from a tax refund perspective (as opposed to being paid the redundancy payment in 2014).

She is currently on jobseekers allowance.

We have three queries

A. Why, from a tax viewpoint, would it have been better to receive the redundancy payment in 2013 (while still in employment) rather than this year

B. The salary and tax details on her p45 does not include the redundancy payment. Can she use her p45 for the purposes of claiming tax back?

C. Somebody mentioned that she could claim some of the tax she payed on the redundancy payment back. Does anyone know how she would go about this?

Many thanks in advance for any advice

Without a good idea of the figuresni can only refer you to this

http://www.revenue.ie/en/tax/it/leaflets/it21.html

The only benefit I can see from A is that if redundancy occurs during the first week of 2014 I think any ex gratia amounts should be taxed on a wk1/mo1 basis however you could always have cumulative tax applied retrospectively.

Mr. Incognito

Because if any of the redundancy was taxed you can ask for a P21 Balancing Statement to have it refunded against any unused credits in early 2014- See the stickies on how to do this.

Also top slicing relief was abolished in the budget so you got the benefit of that in the 2013 tax year.

that covers A, B and C