Benefit in Kind

  • Thread starter patdonovan1
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patdonovan1

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My company agreed a reduncancy package before Christmas, and it was agreed a severance paymenyt of Euro 11,400 plus statutory. The company then decided not to amke us redundant for the moment, but agreed that we would be given the severance payment as a loan. They advised us that we should declare this income to the revenue commissioners and we would be liable for approx. Euro 500 in tax.
However, before we had time to declare this to the revenue commissioners the Minister for Finance introduced the Benefit in Kind Tax. I now find that I am paying Euro 97 in Benefit in Kind per month.

Can I do anything about this ? I am due to retire in December 2005.
 
Did you actually need the loan? This sounds a bit dodgy, one minute a company needs to lay people off, the next minute it's handing out loans.

€100 a month sounds like a ridiculous amount of money to be paying in BIK on a loan that small.

If I were in your position I'd call an accountant. It'll probably cost less than the €100 a month you seem to be paying.

Something's not right about the whole arrangement.

-Rd
 
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