Tax on redundancy payment after full SCSB

[banchang]

I am facing a tax bill on my severance payment, & wanted to understand what should I be looking at to reduce it. This bill is after using max SCSB of Eur200k.

I have heard of different tax strategies to reduce this using AVCs etc, but before I pursue with paying a professional I wanted to understand what if anything can be done on this - if nothing possible I'm not going to waste money with a tax advisor.

Thoughts welcome.

 

[JoeRoberts]

Some people take out a short loan or use savings to max out avcs before they cease employment and then repay it with money from their redundancy. It's a form of tax reduction though it is not reducing the tax on severance and the severance cannot be considered as earnings when considering the max pension contribution limit .