Voluntary Redundancy & Tax

loveisdivine

My husband is in line to receive a voluntary redundancy payment of €44,800.

Can someone just let me know if my tax calculations on this are correct, as far as I can tell on the citizens info website I have it right, but just want a second opinion.

Statutory Redundancy of €17508 tax free (used a redundancy calculator to get this figure)

Basic Exemption of €10000 plus €765 for every year of service (14 years = €10710) so a total of €20710.

Then the increased exemption as he has not received a lump sum before €10000 less any pension refund.

So, if we take the pension refund out of it for now the total would be €48218.

Meaning he wouldn't pay any tax at all?

Obviously if there is a pension refund then that tax free amount will come down, however he has only been paying into for 4 years so the amount won't be huge.

Does that all seem correct?

sillysocks

It's probably worth him asking his company to allow him see an accountant or whoever is dealing with their redundancies. When I was made redundant we had a meeting with someone who went through it all step by step.

In saying that from memory I got about 35-40k, can't remember the exact figure. I was only there 8 years and think I paid maybe a few hundred in tax so your calculations look like they wouldn't be too far off anyway. Only thing to think about is whether some of the calculations are capped at a certain number of years or anything, not sure they are but just worth checking.