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Claiming tax refund after getting made redundant

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  • 07-07-2020 9:32pm
    #1
    Conord2013
    Registered Users Posts: 5 ✭


    I have been made redundant after 15 years with a company last week and am currently out of work. Just after applying for Jobseekers.
    Wondering does anyone know what tax I can claim back? And when is best time to claim?

    I understand if I do find a job and am back working soon I cannot claim any back and that's fine but the way things are at the minute I could be out of work for a while and would love to get maximum tax back on tax iv paid on my wages for the past 6 months and the tax iv paid on my redundancy payment.
    Thanks


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    #2
    y0ssar1an22
    Registered Users Posts: 16,024 ✭✭✭✭y0ssar1an22


    Conord2013 wrote: »
    I have been made redundant after 15 years with a company last week and am currently out of work. Just after applying for Jobseekers.
    Wondering does anyone know what tax I can claim back? And when is best time to claim?

    I understand if I do find a job and am back working soon I cannot claim any back and that's fine but the way things are at the minute I could be out of work for a while and would love to get maximum tax back on tax iv paid on my wages for the past 6 months and the tax iv paid on my redundancy payment.
    Thanks

    i think you need to wait until the end of the year. your tax credits are cumulative so you only get use of them as the weeks pass by.

    there should be no tax on your redundancy, and it is based on your gross wage (not net wage). you may need to check that out


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    #3
    StackSteevens
    Closed Accounts Posts: 873 ✭✭✭StackSteevens


    y0ssar1an22 wrote: »
    i think you need to wait until the end of the year. your tax credits are cumulative so you only get use of them as the weeks pass by.

    there should be no tax on your redundancy, and it is based on your gross wage (not net wage). you may need to check that out

    You could start to claim it after 8 weeks of unemployment (LINK) alternatively as suggested you could wait until after year end.


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    #4
    Conord2013
    Registered Users Posts: 5 ✭Conord2013


    Ok thank you for your helpðŸ‘


  • Options
    #5
    okidoki987
    Registered Users Posts: 10,616 ✭✭✭✭okidoki987


    Conord2013 wrote: »
    I have been made redundant after 15 years with a company last week and am currently out of work. Just after applying for Jobseekers.
    Wondering does anyone know what tax I can claim back? And when is best time to claim?

    I understand if I do find a job and am back working soon I cannot claim any back and that's fine but the way things are at the minute I could be out of work for a while and would love to get maximum tax back on tax iv paid on my wages for the past 6 months and the tax iv paid on my redundancy payment.
    Thanks

    Have you been made redundant in the last 10 years before?
    If not you should be able to get most or all of it tax free depending on the amount you have received, depends on how many years you have worked for the same company.
    There is a basic tax free exemption of €10,160 plus €765 for each completed year of service. The basic exemption may be increased by €10,000 in certain circumstances

    Have a look here https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/lump-sum-payments/index.aspx

    Also the amount you received as a redundancy payment may have a bearing on the numbers of weeks you have to wait before you will get anything from SW.


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    #6
    Conord2013
    Registered Users Posts: 5 ✭Conord2013


    No this is my first time to ever receive redundancy but I still had to pay 10k in tax unfortunately.
    We received a generous severance from our company 6 weeks plus 2 weeks from government for each year of employment.
    I still think it's a disgrace the government tax someone who has lost their job, that's why I would love to claim some of this tax back.
    I have now paid approx 14k in tax this year from my six months wages and redundancy.
    Yes you are correct I have to wait 4 weeks before I can get SW..
    Wondering am I better to start claiming tax back after 8 weeks or wait till year end.( I know if I do find a job I wont be able to claim anything) but am thinking if I am able to claim alot of that 14k back then it could be worth it not getting a job and doing a few courses till end of year? Any idea how much I would be able to claim back?


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  • Options
    #7
    y0ssar1an22
    Registered Users Posts: 16,024 ✭✭✭✭y0ssar1an22


    Conord2013 wrote: »
    No this is my first time to ever receive redundancy but I still had to pay 10k in tax unfortunately.
    We received a generous severance from our company 6 weeks plus 2 weeks from government for each year of employment.
    I still think it's a disgrace the government tax someone who has lost their job, that's why I would love to claim some of this tax back.
    I have now paid approx 14k in tax this year from my six months wages and redundancy.
    Yes you are correct I have to wait 4 weeks before I can get SW..
    Wondering am I better to start claiming tax back after 8 weeks or wait till year end.( I know if I do find a job I wont be able to claim anything) but am thinking if I am able to claim alot of that 14k back then it could be worth it not getting a job and doing a few courses till end of year? Any idea how much I would be able to claim back?

    assuming you are in the 40% bracket and standard credits, you should be able to claim back 3300 * 5.5/12 roughly = 1512.

    ETA: if there is a course you have your eye on and would help command a better wage in 2021, its a great time to take a work break and do that


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    #8
    Conord2013
    Registered Users Posts: 5 ✭Conord2013


    Ok thanks for your help, appreciate it.


  • Options
    #9
    StackSteevens
    Closed Accounts Posts: 873 ✭✭✭StackSteevens


    Conord2013 wrote: »

    Wondering am I better to start claiming tax back after 8 weeks or wait till year end.( I know if I do find a job I wont be able to claim anything) but am thinking if I am able to claim a lot of that 14k back then it could be worth it not getting a job and doing a few courses till end of year? Any idea how much I would be able to claim back?

    Here are the facts:

    https://www.citizensinformation.ie/en/employment/retirement/income_tax_in_retirement/retirement_lump_sum_taxation.html


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