redundancy tax question

Eyeballs

I was made redundant a couple of months ago and paid quite a lot of tax on it.Question is if I dont find work by the end of the year can I get this tax refunded? or is there only a certain amount refunded if any?

Thank You

Mr. Incognito

A large amount of redundancy is tax exempt.

Did the person administering the payroll know this or are they merely banging it through a payroll programme as salary?

I would certainly look into this

mark_jmc

Firstly the statutory element of any redundancy is tax free. Statutory redundancy is 2 weeks per year of service plus one additional week. Then for any ex gratia payment on top of this there are 3 different methods for calculating the tax exemptions available.


The first is the basic exemption, this is €10160 plus €765mper' full year of service. So if someone had 10.5 years of service they would have a basic exemption of €10160 +(765 x 10) =€17810 exemption


The basic exemption of €10,160, plus €765 for each full year of service will be increased by a further €10,000 if:

• you are not a member of an occupational pension (superannuation) scheme or
• you irrevocably give up your right to receive a lump sum from the pension scheme and
• you have not made any claims in respect of a lump sum received in the previous ten tax years.

If you are in an occupational pension scheme, this increased exemption of €10,000 is reduced by the amount of:

• Any tax-free lump sum from the pension scheme to which you may be immediately entitled or
• The present day value at the date of leaving employment of any tax-free lump sum which may be receivable from the pension scheme in the future.

If the lump sum from the pension scheme is more than €10,000 you are not due the increased exemption. If it is less than €10,000 you are due the increased exemption of €10,000 less the amount of the pension scheme entitlement.


The third option is called scsb. This calculation is generally of benefit to people with long service.
The calculation is A x (B/15) - C
Where A is average earnings over the last 3 years
B is length of service in years
C is the nets present value of any future lump sum under an approved pension scheme

Eyeballs

I availed of the scbc option but what I'm wondering about is can I claim back the tax I paid on the lump sum in January if I don't find work by then

I carried a watermelon

Eyeballs wrote: »

I availed of the scbc option but what I'm wondering about is can I claim back the tax I paid on the lump sum in January if I don't find work by then

Yes, you can do it now if your still unemployed. All you will need is a completed P50 form (you can print this off the revenue website) and parts 2&3 of your form p45.

Spudy67

I carried a watermelon wrote: »

Yes, you can do it now if your still unemployed. All you will need is a completed P50 form (you can print this off the revenue website) and parts 2&3 of your form p45.

I sent my p50 and p45 off to the revenue nearly two weeks ago. Any idea how long It will take to get a reply? (sorry for hijacking the thread btw)