Tax refund after Redundancy payment

Discussion in 'Redundancy, unemployment & jobseekers entitlements' started by Broth of a boy, Jun 18, 2018.

  1. Broth of a boy

    Broth of a boy Registered User

    Posts:
    4
    Hi folks,

    I have been offered a decent redundancy package by my employer. After statutory and SCSB deduction approximately €50,000 will be taxable. If I have no further earnings for this tax year, which I won't as I intend to do a wee bit of travelling, I will be able to claim a tax refund after the end of the year as I won't have used up my tax credits and 20% tax band for the 2nd half of the year. So far so good. However, I would like to get my hands on this sooner if this is possible. So, can I either (a) apply to Revenue as soon as my employment ends, telling them I will have no further earnings this year or (b) get my employer to apply the remainder of my tax credits and 20% band to my final salary payment which will include the taxable portion of the redundancy payment and my accrued holiday pay?

    Or is there an alternative (c) where I could get my employer to defer €50,000 of the package until the next tax year, at which point I would have a whole new set of tax credits to soak it up.

    Many thanks in advance for any wisdom that can be shed on this!
     
  2. Broth of a boy

    Broth of a boy Registered User

    Posts:
    4
    Just updating here:
    Apparently option (a) is possible but Revenue may decide not to issue a refund until 2019.
    Option (b) is actually possible but payroll didn't want to know!
    Option (c) is NOT possible as the redundancy payment is deemed to be received at the date of termination of employment, even if actually paid some time later.

    So, having maxed out my AVC's for 2017 and 2018, I can immediately apply for a refund for the 2017 AVC and get the 2018 AVC refund and the benefit of the unused credits and bands in early 2019.
     
  3. Mary55555

    Mary55555 Registered User

    Posts:
    45