Redundancy & tax

[FONT=arial,helvetica,sans-serif]Hi,


A friend of mine was recently made redundant.


The redundancy payout is 58k from her job but tax to be deducted will be 13k.


She is thinking of staying off work for the rest of the year & taking the kids out of creche(saving a pile of money in doing so) and going back to the workforce next year perhaps.


Were she to do this would she be able to reclaim this tax back?? Or will it depend on whether or not she & her husband(high 6 figure earner) are taxed jointly or not??


Any advice appreciated.



Ta

[/FONT]

--

She will qualify for job seekers benefit after a waiting period for no more than nine months during which time she should at all times be available and seeking work.

Her tax free allowances are calculated on a Jan - Dec basis so the question is would she have used all her allowances, if she left in say March then she could not have, on that basis a tax return for 2013 due in 2014 may return funds alright whether she is self assessed or jointly.

The first part statutory redundancy is exempt from tax.

Then there is an exempt portion computed in 3 ways. Check out:
http://www.revenue.ie/en/tax/it/leaflets/it21.html

Then there is top slicing relief, so check them out.

cheers folks