When my redundancy payment gets taxed

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hjpatrick

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I will receive a 4 week notice of redundancy on 8th December 2017. My last working day will be 5th January 2018, when I will also receive my redundancy payment.

Around 20k of the received lump sump will be taxable, and I am wondering whether it will be taxed as an income of 2017 or 2018 (i.e. will I be able to use some of my 2018 tax credits to lower my tax liability)?

Many thanks.
 
hjpatrick said:
Around 20k of the received lump sump will be taxable, and I am wondering whether it will be taxed as an income of 2017 or 2018 (i.e. will I be able to use some of my 2018 tax credits to lower my tax liability)?
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The lump sum will be treated as arising on the date your employment terminated - TCA 1997, s 123(4).
 
Thank you for a quick response Sophrosyne.

Just so that I correctly interpret your answer, is my employment going to be terminated on my last day at the company (5th January)?
 
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