This will be of interest to any of you out there who paid tax on a redundancy payment received in the last few years.
One of the main refunds due that is not claimed for people who pay tax on a redundancy is of Income Levy and Health Levy.
While Income Tax is charged on a year to date basis, Income Levy and Health Levy are charged just on the income received in that period. Of course, with a redundancy payment, you receive a fine big lump sum in that period, whether weekly or monthly paid.
This often means that the Income Levy and the Health Levy are charged at the highest rates. How much of a difference can this make? well it depends on your annual income from all sources, but just as an example we recently source a refund of over €1,000 euro between the income levy and the health Levy for a person who paid in total about €15,000 in tax in his redundancy.
Many people are aware to get their taxes checked following redundancy for things such as regular overpaid income tax and Top Slicing Relief, but frequently miss out on this.
Why not get your redundancy tax checked with our in-house redundancy tax expert John O’Connor on 05991 73300.