Redundancy ex gratia payments tax relief query

pittsburgh

Hi all,

Been made redundant, been given the statutory which is not taxed

They then they offered me an ex gratia payment on top which they said is taxed.

I informed them of the reliefs (10,160+765 per year service ) which my payment is below, but they didn’t seem to have a clue.. (UK HR via Skype probably the reason...)

Will the Pay roll make a balls of this and tax it as salary? What happens if so?

Who do I come back to? The employer or revenue?

Thank you for any information

gerrykeegan

There are two other relief options. An increase of the basic exemption of 10k or an additional calculation called SCSB which can provide very good relief if you are a high earner with long years of service. I haven't heard of Revenue refunding a company's errors

pittsburgh

gerrykeegan wrote: »

There are two other relief options. An increase of the basic exemption of 10k or an additional calculation called SCSB which can provide very good relief if you are a high earner with long years of service. I haven't heard of Revenue refunding a company's errors

Thank you for the reply.

I suppose the best option is to explain to them further in the next meeting as we in a 30 day consultation period now.

You would hope to think they / or the payroll know about these reliefs...

But the HR / payroll etc is all on the Isle of Man so most likely dont have a clue!

namenotavailablE

You could direct them to this link:

https://www.revenue.ie/en/employing-people/what-constitutes-pay/what-pay-includes/lump-sum-payments.aspx