Tax on redundancy

[dariuscork]

Looking for some help please, I am getting redundancy of 206,000 Euro which is 42,000 statutory, and 164,000 ex gratia, I understand 100,000 is tax free with tax payable on 105,000, how much tax will I pay on this? I am 60 years of age so I will not be working again, thanks in advance for any help.

 

[ClubMan]

Any use?

http://www.revenue.ie/en/tax/it/leaflets/it21.html
http://www.citizensinformation.ie/e...edundancy/redundancy/redundancy_payments.html
[broken link removed]

For such a large sum you should probably consider getting independent, professional advice.

 

[wbbs]

It's a complicated calculation, there are several ways of doing it and you can opt for the one that is most tax efficient for you. As I presume you have long service it will the one that takes that into account that will probably be best. You need to work out from the different formulas what your taxable sum will be, that will then be taxed at your usual rate of tax, you can then apply for top-slicing relief next year which may get you a refund of some more. Is there a union or anything involved, they could probably provide info on it or the HR dept should be able to give you an indication of what tax you will pay.