Retiring and Lump Sum Payment

[Archip]

I'm a propitiatory director looking to retire from my post after 9 years of service.
According to this source:

(Can't post link to the revenue website)

I may be entitled for a lump sum payment from my company.

Given my average annual salary for last 36 months is €50,000 I can claim €10,160, plus €765 * 9 years = 17, 045 using the basic method,
or (€50,000 / 15) * 9 = 30,000 using Standard Capital Superannuation Benefit - SCSB.


I have the following questions:

1. I'm not planning to apply for 'Increased exemption', should I notify the Revenue about the fact that I'll be taking and if so how do I communicate it to them, is there a special form my accountants have to submit to the revenue in relation to this (I won't want to challenge my accounts so I'd rather get clear instructions for them)?

2. Is it up to me to decide which approach to use SCSB or basic one? The document says 'if you have high earnings and long service' providing with no additional measurements, I guess I can choose whatever calculation methods works best for me, can't I?

3. When using 'Payment in lieu of notice' am I okay to take some money on a monthly basis 3 or 4 months ahead of my service termination - my contract provides with no 'payment in lieu of notice', so I should be okay from the legal perspective, shouldn't I?

Thanks.

 

[Mary55555]

Hello

See attached:
https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-05/05-05-19.pdf

Q1: Page 26 - no you don’t have to notify Revenue.

Q2: you decide the most favourable treatment that suits you .. don’t forget to get the value of “C” for the scan calculation..

Q3: I’m not sure I fully understand the circumstances.. you are a proprietary director.. if you are in control of the company then you can determine the amount of lump sum, so I would just take a higher lump sum rather than trying to split it between it and pay in lieu..

I suppose if you are not in control .. then I would just ensure you had all contracts in place / on file to support your claim that there is no pay in lieu on the contract ..