Previous employment lump sum

J

jocsvh

Guest
I received a lump sum payment from a previous employer and they have deducted practically 50% in PAYE/PRSI.Duration of employment was October 2003 to March 2005?Payment was received on February 15.How do I go about getting this tax back?Revenue have given me different answers..one being having to wait until next year until my P60 arrives.HELP.
 
Are you sure that you're due tax/PRSI back on it? If you normally pay tax at 42%, PRSI at 4% and health levy at 2% then unless this lump sum was somehow tax/PRSI exempt (in part or full) then 48% of it should be deducted in this way. If you suspect that you are entitled to some relief on this sum then write to Revenue explaining why and include a copy of your 2004 (assuming that the lump sum was made in 2005) P60 and they should rebalance your tax affairs and refund any overpayment of tax. PRSI may need to be claimed separately so ask them about this too.
 
Thanks Clubman.I normally pay the standard rate of tax at 20%.The payment was received this February 2006.In my new employment I am probably there or thereabouts at the standard rate cut-off point.