Tax Implications for returning to work after redundancy

C

Chickatee

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Could be a red herring but I can't find information on this. I am due to be made redundant at the end of March with a decent redundancy package. I would like to take 2-3 months break before starting a new job.

I've had 2 or three people mention to.me that returning to a job too soon would have an effect on the tax I have to pay on a new salary (I'm not sure what) and that it would make more sense to take 4-5 months off. Does this make sense to anyone??
 
I know this is not your question but Just a reminder here: I don't know for sure if there will be any tax implications after the event (of course yes when the redundancy is calculated for you) but one thing to keep in mind is to sign on for credits as soon as possible.
Depending on when you retire your pension might be calculated using the TC approach only when every PRSI counts and for that you need to be available for work ;). So whatever you do don't forget to sign on for your credits!
 
Thanks for the replies! I know certainly in Northern Ireland there is an impact however different tax system. I was definitely more concerned about having to pay more tax than I should, paying the normal level of tax on pay I've no issue with. Take more time...less tax...but eating into redundancy pot which I could definitely put to much better use
 
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