prettyboybaker
Registered User
- Messages
- 31
Thanks Misemoi, I'm a bit confused by the last part. Do you mean the company will owe revenue prsi ? Also, do you know if the refund is in tax credits or cash? Thanks again.This happened some colleagues once. Just easier for them to tax and let the employee reclaim. Make sure your partner gets all the paperwork and revenue will make sure to refund any overpaid tax. Company will be owed er prsi as well, so it's not good for them but probably the easiest for them !!
Thanks so much for that. I haven't seen the offer and she is currently digging out her contract so we will see.If it’s a contractual obligation, then it’s not ex gratia.
‘ex gratia’ literally means as a favour or with no legal obligation.
If there’s ambiguity, it absolutely makes sense for the employer to operate full PAYE etc. The risk is on the employer if they don’t as the employee could go off into the sunset with the cash, with Revenue looking to gross it up.
The “stipulation in the contract” part sounds like the problem.
They should ask the company to foot the bill for an employment tax and legal specialist to look at the issue.
And if they refuse, and the amounts involved are meaningful, which I suspect they are, they should get their own advice.
Again, thanks so much. Really helpfulEssentially, pay in lieu of notice or any kind of contractual entitlement to a payment is taxable in full.
“We’re really sorry, here’s 50 grand” is when it’s potentially tax free.
And statutory is tax free (the two weeks per year capped at €600 a week stuff).
Hopefully the company get their act together before it's our turn to walk the plank. Thanks for your help.Yes this was a huge pain for my colleagues...when it came around to my time they had gotten themselves in gear and were applying all the exemptions. So I got my correct net redundancy while my colleagues were still waiting for their refund !
Once Revenue decide you have overpaid tax the refund will either go to your bank account if you have that registered on mygov or they will issue a cheque.Also, do you know if the refund is in tax credits or cash? Thanks again.
I presume that you meant myAccount?your bank account if you have that registered on mygov
My view is that you’re completely goosed.Thanks all.
A quick update, we have found her contract and it does have a Redundancy clause, which states 1 month's salary for every year worked. It finishes this clause by saying "shall be subject to the deduction of such tax as may be required by law".
Are we goosed then?
Apparently, this clause only appears in older contracts.
Surely redundancy is redundancy and is taxed as such regardless of clauses?
Damn it. Is it worth talking to somebody like a lawyer? If so what type?My view is that you’re completely goosed.
If it was me, I’d play dumb, go to the company, and say “this is terrible, surely there’s a way to sort it out, should the company not get tax/legal advice from a specialist for everyone’s benefit?”Damn it. Is it worth talking to somebody like a lawyer? If so what type?
I really do appreciate your help. Thanks
I doubt it.You are a legend. Playing dumb comes naturally.
Interestingly out of the dozen our so getting chopped, only 3 are affected by this clause.
Part of me wonders if there is some discriminatory angle.
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