Redundancy tax relief repayment

[henry]

There is a possibility that I could be made redundant. I am familiar with the rules in relation to the calculation of the tax free amount I would be entitled to.

A situation could arise where the circumstances of the company could change and that my old job would become available again and I may get my old job back.

Does anyone know if the revenue are entitled to a repayment of the tax relief if this situation arose. Sorry if this is confusing and hypothetical, but it could be important.

 

[icantbelieve]

Call the revenue office for the definitive answer, they're pretty helpful these days and its not as if you will be able to avoid them finding out if you are rehired. It'll just give you an idea as to whether you can blow your entire redundancy payment or not.

 

[ClubMan]

I know that if a company "reverses" a redundancy within a certain period of time then the DETE will claw back the RP1 statutory redundacy payment subsidy which might suggest that Revenue might act similarly to clawback tax/PRSI on otherwise tax/PRSI exempt redundancy payments to the employee in the same situation.