Losing your job is stressful, but there may be a silver lining - you could be owed a tax refund. When you stop working partway through the year, you may have overpaid tax because your credits weren't fully used. This guide explains how tax refunds work after losing your job in Ireland.
MyTaxRebate.ie helps workers in all situations claim back overpaid tax. Whether you've been made redundant, had your contract ended, or resigned, we can review your tax position.
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The Irish PAYE system calculates tax on a cumulative basis throughout the year. It assumes you'll work and earn money for the full 12 months. When you stop working early, several things can result in a refund:
Unused Tax Credits
You're entitled to a full year's tax credits even if you only worked part of the year. If you lost your job in June, half your annual credits may remain unused - these can be converted to a refund.
Unused Rate Band
Similarly, your standard rate band is calculated for the full year. If you stopped earning before using it all, some income that was taxed at 40% might have been overtaxed.
Example Calculation
Scenario: Worked January to June, then unemployed
Annual tax credits entitled to: €4,000
Credits used during employment: €2,000
Unused credits: €2,000
Potential refund: Up to €2,000
Important: Actual refunds depend on your specific circumstances. The example shows the maximum potential - your actual refund will depend on how much tax you paid and when you stopped working.
Redundancy and Tax
If you were made redundant, there are additional considerations:
Statutory Redundancy
Statutory redundancy payments are tax-free. This is calculated based on your length of service and pay.
Ex-Gratia Payments
If you received additional redundancy payments above the statutory minimum, these may be subject to tax - but various exemptions can apply. This is a complex area where professional help is valuable.
What About Jobseeker's Payments?
Jobseeker's Benefit and Jobseeker's Allowance are taxable income. However, you can still claim unused tax credits against these payments. Learn more about how unemployment and tax work.
When to Claim Your Refund
You have two options:
- 1.Wait until year end: Claim after December 31st when the full year is complete
- 2.Claim during the year: If you're certain you won't return to work that year
MyTaxRebate.ie can advise on the best approach for your situation.
Frequently Asked Questions
Can I claim if I'm now working again?
Yes. If there was a gap between jobs, or if you changed jobs during the year, you may still be owed a refund. We review your entire tax year to identify overpayments.
What if I lost my job last year?
You can claim refunds for the current year plus 4 previous years. If you lost your job in 2023 or 2024 and haven't claimed, you're still entitled to any refund owed.
Do I need my P45 to claim?
P45s are no longer issued in Ireland since 2019. All employment records are now held digitally by Revenue. MyTaxRebate.ie can access your records directly to process your claim.
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