No tax payable on redundancy

Just trying to do quick calculation on a redundancy payment.

Employee has worked at company for 11.5 years. Redundancy payment is 2 weeks per year of service on top of statutory. I believe statutory redundancy is tax free.

So going on a weekly wage of 807.00 euro are my calculations correct.

23 weeks at 807.00 = 18561.00

Basic exemption = 10160.00

Plus 765.00 per year of service (765 x 11.5) = 8797.50

10160.00 + 8797.50 = 18957.50 tax exempt.

I think this means no tax is payable, as employee has not received any previous redundancy payments. Am I correct?

Not quite, the calculation of the basic exemption is €10,160 plus €765 for each full year of service, so it is €10,160 + (€765 * 11) = €18,575.

As this is still higer than the expected ex-gratia payment, you are right to say there is no tax on any of the redundancy payment.

Ah, it's full year of service. Thanks for clearing that up for me Nige, much appreciated.