Settlements/termination payments

Due to our changing economic environment we find ourselves unfortunately advising a lot in the area of termination payments which can take many forms.

The most common theme that we find in relation to advising in this area is that tax advice is the last thing that is considered and sometimes it can be all too late if you have signed on the dotted line. The wording of the documentation is key to making the payment tax efficient. This is relevant whether it is a termination payment, redundancy payment, settlement payment or compromise agreement.

Common errors that often occur with the taxation of termination payments is the application of PRSI (or not as the case may be) for different elements of the payment.

The word of warning for anyone who receives a termination proposal or finds themselves involved in a compromise agreement is to seek tax advice in advance of signing any paperwork to ensure you are maximising relief. This can save a lot of time and tax!

Should you require any further information in relation to the taxation termination payments please do not hesitate to contact Lisa on 01 660 8000 or send her an e-mail at lisa@kta.ie

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Contact details

+353 1 660 8000

+353 1 660 8050

info@kta.ie

Address

Fleming Court, Fleming Place

Mespil Road

Dublin 4

D04 N4X9

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Registered Number: 265437 / Registered Address: Kennelly Tax Advisers, Fleming Court, Fleming Place, Mespil Road, Dublin 4.


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