Lump Sum Payment Question

Inch

Registered User
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I need some advice on a tax matter.
I was paid a lump sum to compensate me for future loss of earnings,my pay has been reduced accordingly.I read this on the revenue website http://www.revenue.ie/en/tax/it/reliefs/lumpsum_payments_employees.html but dont know how it applies to my situation.

PAYE worker earning less than 32,000 a year
Lump Sum Payment received 14,500
Tax,PRSI,USC on lump sum is over 7000

I usually pay 20% tax so can I apply for a refund next year and if so How much would I receive?
Question is Am I entitled to any tax relief and if so How do I go about it?
I contacted the Revenue but they never got back to me.

Thanks in advance
 
Is your salary around €32k?

It sounds about right to be honest.

The first circa €33k is taxed at 20%...the rest at 40%. USC and PRSI on top of that.
 
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There is relief on 2/3 of the lump sum as per the link above. You will have to wait until after year end to claim it.
 
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