Get refund from Revenue on overpaid redundancy lump sum tax

eskimo_undercov

Hello good people of the boards.

I was made redundant at the beginning of January and received a redundancy lump sum (apart from the Statutory Payment). My employer ignored the Increased Exemption of €10000 and only applied Basic Exemption as per Revenue guidelines (here)

That means that I overpaid tax by roughly €4000. I went to Revenue to claim it and they said that I need to submit P50 form for "Claim a tax and USC refund if you are unemployed" along with a hand written letter explaining that the employer did not apply Increased Exemption and that I want a refund of €4000.

Today I called Revenue and the officer said that the claim will be processed next week (when 8 weeks timeframe hits as I receive Jobseekers Benefit) but it will be a rather disappointingly small refund of max. €1000.

I questioned the officer when I will get the rest but was told that they can only refund what I accumulate weekly via credits (I think).

This made my blood boil cause I'm not claiming anything to do with Jobseekers Benefit. I'm claiming tax I overpaid before Jobseekers Benefit, tax on redundancy lump sum.

What can I do? Revenue officer kept throwing tax terms at me that I didn't understand and said that it's not possible for me to get the full amount back.

Does anyone understand what they are on about? Is there someone I can raise this with? I'm unemployed and obviously €4000 is a huge amount for me.

Any help would be appreciated

Thanks,
E

Calahonda52

Did you read page 10 in this document which is shown on the same page as your link above
https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-05-19.pdf

Do you meet all the requirements for the extra 10

eskimo_undercov

Calahonda52 wrote: »

Did you read page 10 in this document which is shown on the same page as your link above
https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-05/05-05-19.pdf

Do you meet all the requirements for the extra 10

Hi @Calahonda52. Indeed I do meet the requirements.

mystic86

eskimo_undercov wrote: »

This made my blood boil cause I'm not claiming anything to do with Jobseekers Benefit. I'm claiming tax I overpaid before Jobseekers Benefit, tax on redundancy lump sum.

What? You're claiming tax you overpaid, but you're acting as if it's the only taxable income you have in 2020. You're credits are spread out during the year. Perhaps other income you have in the year will absorb them, perhaps not. If not, you'll be able to get those credits back as they will be offset on the tax paid on the lump. They can't give it all to you now, cause the year is early and you may have other taxable income. As the year goes on you'll get a bit more and a bit more, if you haven't used them.

okidoki987

mystic86 wrote: »

What? You're claiming tax you overpaid, but you're acting as if it's the only taxable income you have in 2020. You're credits are spread out during the year. Perhaps other income you have in the year will absorb them, perhaps not. If not, you'll be able to get those credits back as they will be offset on the tax paid on the lump. They can't give it all to you now, cause the year is early and you may have other taxable income. As the year goes on you'll get a bit more and a bit more, if you haven't used them.

It's a redundancy payment which is totally different to normal PAYE.
OP will/should get increased tax free sum due to SCSB, years worked and other
reasons.

OP:
Doesn't sound like the person in Revenue you were talking to knew what you were looking for.
I would email them and explain what has happened and see what they come back with.

Calahonda52

eskimo_undercov wrote: »

Hi @Calahonda52. Indeed I do meet the requirements.

Sorry, can't add anything more useful then

As noted above I think the person didn't know.

CIARAN_BOYLE

The form you used to apply for a refund is the one for claiming back due to credits.

You need to deal with revenue by email or phone to amend your employers incorrect payroll return.

You say you were told to add a hand written letter. Well here's a lesson. They dont read hand written letters. Deal by my enquiries through your online account.

bettyboo72

https://www.boards.ie/discussion/2058058528/get-refund-from-revenue-on-overpaid-redundancy-lump-sum-tax

Hi Eskimo - Sorry to jump on an old thread but my redundancy of last month was calculated the same as yours, wrong tax by about 4.5k. Payroll in my old co are atrocious, oh and its a large multinational! This only happened today. Unusual situation but this was the nearest thread I could find. Can I ask you - did you get it sorted out and how? Does none of this fall onto your ex employer to resolve.. Many Thanks :)