Recently made redundant and company used SCSB calculations. It appears they calculated all extra salary benefits but on departure I settled a labour dispute with them which was paid as an ex gratia payment. In normal circumstances it would have gone through payroll.
Looking at the SCSB calculation it looks like this ex gratia amount was not included so question is ex-gratia payments automatically excluded from the SCSB calculation and if not can I resolve this with revenue post redundancy.
Total amount of ex gratia was 14K so the additional tax relief is significant.
Lump sum payments in compensation for loss of employment are subject to tax. How is tax calculated and what are your entitlements?
www.citizensinformation.ie
The following payments are not exempt from tax but may qualify for some tax relief – see ‘Tax-free entitlements’ below.
A non-statutory redundancy payment, that is, the amount paid by your employer, which is over and above the statutory redundancy payment. This is also known as an ex-gratia payment.
The labour dispute getting paid as an ex-gratia probably works in your favour. Typically, payments following legal action are taxable as these are payments for unpaid/under remuneration and thus taxable. If the labour payment was treated as an ex-gratia I would not expect to see this used in the SCSB calculation.