Redundancy

R

rahman

Guest
I am a non propriatary director of a limited company (5 other directors) and I am due to receive a substantial lump sum at the end of Feb. Can I make myself redundant from the company and avail of the the tax breaks for redundancy payments. I believe I can receive up to €10000 tax free. I will then be setting up another company later in the year and continue trading. Are there any pitfalls or anything else I should know.
 
I presume you mean €100K and not €10K tax free as a termination payment? You can also get further lump sums (not sure on limits) tax free if paid into a PRSA (but not RAC or occupational scheme as far as I know). It's a bit of a loophole that Revenue currently allow and many accountancy firms are aware of but are not keen to draw attention to.
 
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