Redundancy

Ireland and the big R …If it’s not the Recession in the news, it’s Redundancy!

A redundancy situation arises where one loses their job due to circumstances such as the closure of a business or a mandatory reduction in the number of staff.

The amount of redundancy payment one receives varies per circumstance and employer. A statutory redundancy lump-sum, which by law must be paid, is entirely tax-free. Only payments above and beyond the statutory payment (an ex-gratia payment) are taxable.

However, if you have been made redundant, it may not be all doom and gloom …

In general, redundancy payments qualify for special tax treatment – ex-gratia payments may even be exempt from tax or may qualify for additional relief from tax. Irishtaxback.ie will be happy to assist you in reviewing and calculating your tax free entitlements. Simply contact one of our tax professionals for further information.