Redundant in December, Lump Sum Paid End of January 2020, TaxBack Question

[Puddin]

Hi All,

This is a hypothetical question about Tax Back Following Redundancy.

Say I am made Redundant and finished working this month ( December 2019 ) but the redundancy Lump Sum wasn't paid till End of January 2020.

If i didn't work for all of 2020 following my redundancy would i be entitled to claim Tax Back in January 2021 for over-payment of Tax in 2020 ?

Does the fact that the lump sum wasn't paid or subject to income tax till January 2020 mean i technically was employed in January 2020 for tax purposes ?

Sorry for wording hopefully it makes sense.

 

[Feemar5]

As far as I know ( open to correction ) lump sum payments have to be made in the year you were made redundant. Basic redundancy payments are tax free and exemptions are applied to top ups - €10,165 plus €765 for every year of service.

 

[fayf]

As far as I know ( open to correction ) lump sum payments have to be made in the year you were made redundant. Basic redundancy payments are tax free and exemptions are applied to top ups - €10,165 plus €765 for every year of service.

That is my understanding also. It must be paid out on date of cessation.
There are a number of options and choices for ex gratia (payments in excess of statutory redundancy), these are explored here:

[broken link removed]

 

[Puddin]

That's great thanks. I just wanted to see that it would make sense to take a redundancy early January rather than late December from a Tax Back point of view. Cheers.