top slicing and tax refund

B

bazzarush

Guest
Hi, I received redundancy last year and did not work for 6 months after that in the same year. Should I receive a tax refund for the tax paid in the first 6 months as this would have been at a higher rate?

I am also looking for some information ojn top slicing, the revenue sit is terrible when it come to this, I don't know what to do? Tahanks in advance.
 
check out page 19 of Employers Guide to PAYE on the revenue website for all things related to termination payments.

top-slicing and termination payments are on this link

redundancy payments
 
My wife & I were made redundant last year from the same company.
We obviously over paid income tax.
Our accountant has completed our tax returns for 2007 (including the top slicing thingy).
Just been informed at the beginning of the month that we are due back over €5k.
Should be receiving the cheque/s in the post in the first week of June.

I would suggest speaking with an account on the subject as the top slicing fried my brain when I looked at it first.
 
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top slicing essentially takes a look at your last 3 years of income and tax paid. there is a specific formula A - (P x T/I)

A = the tax you paid in this tax year
P = Lump Sum payment
T = Average amount of income tax you paid over 3 years
I = Average Taxable Income over three years
 
Just done a tax return and sorted all of this out. You need to look for leaflet IT21 on the revenue.ie site. You should look at TSR and SCSB/ increased exemption too as your employer may have charged tax on the minimum statutory figure. Also remember that it's your gross income (P60+ pension contribs you made etc.).


Finally, if you're not a control freak, revenue will calculate TSR for you, just tick the box on your tax return!
 
Does anyone know what qualifies as "income" as regards top slicing.

We have just been told we are being made redundant. In 2006 our multinational company was privatised by venture capitalists. At the time we had stock options for future years and also RSU (restricted stock units) for future years. These were all granted and converted to cash, and I did pay tax on them. We also had shares in a tax exempt approved stock purchase scheme, which were cashed out and therefore subject to belated BIK.

So... would money such as that qualify as income?

Ix.
 
My understanding is that any compensation paid as a result of your termination of employment qualifies for top slicing...so in this instance I would guess that you wouldn't be able to include the income from your shares in the calculation...unless for some reason you can prove they had to be cashed as a result of your termination....

Z
 
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