Key Post: Redundancy Payments

T

tedd

Guest
How can the the tax take on a redundancy "lump Sum" be minimised? - I am going to be made redundant soon - the company lump sum plus statutory under the old legislation amounted to €75000 - I know that the new legislation has changed statutory to 2 weeks per year of service.
My company has said that this would not change the overall amount but that I would gain as a result of the statutory being tax free - any thoughts on this?
Also I will not be leaving until the first quarter of 2004 - if I put money into AVC's from now until then will there be any benefit in this?
I am 43 at present and cannot take the pension lump sum until I am 50
 
S

Slash

Guest
Re: Redundancy Payments

My company has said that this would not change the overall amount but that I would gain as a result of the statutory being tax free - any thoughts on this?
It seems your employer is saying that your Statutory Payment plus Non-Statutory Payment will amount to 75K gross. The Statutory Payment is tax-free, so if the Statutory Payment is increased under the new legislation, you will end up paying less tax on the 75K Gross amount.
 
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