Redundancy Question

Cartman78

Not 100% sure if this is the right forum but fingers crossed

My company is going through a drawn out spin-off/corporate restructuring process at the moment.

There's a strong likliehood that there will be redundancies in our office in the next 12-18 months. I'll be 7 years in the job this September so the mental arithmetic on potential lump sums etc has started.

One potential fly in the ointment (and the nuts and bolts of my question) - I was made redundant from previous job in 2008 and vaguely remember reading something on the forms regarding subsequent redundancies in the next 10 years.
I presume this has something to do with the amount of tax that I would be liable to pay on another redundancy payout before the 10 year period expires (?)

Would be curious to know if my vague recollection is right, and if so what kind of material impact would this have on a gross sum of say €35,000 ?

Thanks in advance, cm

uck51js9zml2yt

I got made redundant twice in 3 years. It didnt effect my tax liabiity.

abc_xyz

You are only eligible for the increased exemption in the tax free allowance on a redundancy payment once every ten years. So, not taking any special circumstances into account, it looks like your tax free allowance is
10,160 + (765 * 7) = 15,515
instead of 25,515 (the increased allowance gives another 10,000 tax free).

You also get the statutory redundancy payment tax free.

See
http://www.citizensinformation.ie/en/employment/retirement/income_tax_in_retirement/retirement_lump_sum_taxation.html#l1526e
And
http://www.revenue.ie/en/tax/it/leaflets/it21.html#section4

Cartman78

Thanks - that's exactly what I was I looking for.

Hopefully the restructuring drags on for another couple of years so! :pac: