Loss of Office Payment in advance

[CoffeeMaker]

Hi, I am a proprietary director of a limited company. I planned to strike off the company in December 2022, and exercise SCSB as per the link below:

Lump sum payments

This section describes lump sum payments and the tax implications

www.revenue.ie

Unfortunately I'm facing an urgent need for 30% of that amount now, which can't wait till December. Given the company is going to be closed at the end of the year is there a chance for me to take part of that benefit now and get the balance paid upon the company closure? The only alternative I can see is to pay myself a loan, which I really don't want to do.

Part of the document implies that it can be done unless I misread it:

Any tax free lump sum payments you receive are then taken from this benefit

Thanks.

 

[T McGibney]

Given the company is going to be closed at the end of the year is there a chance for me to take part of that benefit now and get the balance paid upon the company closure? The only alternative I can see is to pay myself a loan, which I really don't want to do.

Is there any difference between taking payment in advance and taking a loan?

Are you certain that you're entitled to avail of SCSB?

 

[CoffeeMaker]

I understood that I have to pay 20% tax immediately (subject to a refund, plus the BIC on the rate) and the key thing is I have to repay it in full, otherwise it'll be taxed as salary.

In relation to SCSB the Revenue guidance says it doesn't need an approval from the Revenue, my understanding is that SCSB a scheme suitable for the high earners (i.e. low earners are better off with a standard calculation), please let me know if I'm mistaken.

Anyway back to my original point - be it SCSB or just a standard calculation - can portion of it be taken in advance provided the company will be closed within the same financial year?