rogeroleary
Registered User
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, 25% of that is €150,000 discounted at 1% for 7 years is €140,000
As I understand it he is looking at redundancy now with 18yrs serviceWould it not be 3/80 x 25 x €90k?
Total tax free will be 62 + 22 = 84.Thank you very much guys, this is very enlightening. A couple of points based on you rcomments:
Joe R - I note your comment "So SCSB tax free amount would be 108k - 46 = 62k. Then add your statutory tax free amount. It's not clear from your post if the 5 weeks includes statutory." Based on all the above what do you reckon is the total tax free amount please? Is it 62k + 55k? as per below?
- Yes this is a DC scheme
- Yes the 5 weeks includes statutory
- The 500k is mostly made up of current employment ie. 18 years but also includes about 50k from previous employment (7 year prior to current)
View attachment 1841
Thanks again guys for all your help,
Rog
No, top slicing is finished. If you have access to cash you could make an avc contribution to your pension before your leave date, that would be quite tax efficient as your fund is below the 200k tax free limit. So you would get 40% relief (subject to the usual limits) and then would be taking 25% of that out tax free when you start your pension.Thanks very much Joe - this has been very helpful. One last question - is top slicing relief still around these days in the event someone does not work in the year or so following redundancy? Sounds like the exposure to tax & USC would be 71k @ 40% and 8% USC so might be nice to get some of that back if a job didn't come along.
Rog
Gross pay before pension deductions including bik and taxable sw for the 36 months before leave date. Also include any paid holiday pay or pay in lieu of notice if applicable.Hi Joe,
For the average pay calculation for SCSB, what is included in this?
Thanks
Gross pay before pension deductions including bik and taxable sw for the 36 months before leave date. Also include any paid holiday pay or pay in lieu of notice if applicable.
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