Top slicing refund after redundancy

M

Madra

Registered User
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A person was made redundant in 2008 and thinks they may be entitled to a tax claim from top slicing relief. Given the following scenario could someone please advise (Figures are rounded and not accurate but in all cases the top rate of tax was being paid)

2005 - 38K
2006 - 40K
2007 - 42K
2008 - 65K (3 mths pay in one employment and 9 months in new plus 17k)

In 2008, redundancy of 17k received. 10k tax free and 5k statutory so tax free also. Total tax paid about 1k on the redundancy. How does top slicing work in this scenario and is there a refund due from revenue ? When the person inquired in 2008 revenue informed them that there would possible be relief but it could only be claimed at the end of the year so to apply in 2009. Given that they paid so little tax on the redundancy itself they felt they were not due any rebate. But is top slicing based on just the redundancy part or is it based on that years earnings ?
 
According to citizens info site you can only get a rebate on the taxable amount of your redundancy. However, if it was 41% of 1k it should probably be reduced by previous tax calculation. Have a look at the example there. He needs to calculate his tax paid given his reckonable income (Don't know what that is but I presume his taxable pay on p60) and then do the maths. If he paid 410 on 1k he could probably reduce it to about 30% so should get 110 roughly back ?
Disclaimer: I am not an accountant nor a tax expert. Box may not include video.
 
Just be aware that the 4-year time limit has elapsed for 2008 so no rebate may be paid even if one is due
 
Don't delay make contact with Revenue in writing and state that you want to avail of top slicing relief for the years outlined, as already mentioned you may have some challenges with the time lapse but don't delay any more on this as it is worthwhile.
 
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