Jack was made redundant by his employer Horizon Limited, as part of a large scale cost...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jack was made redundant by his employer Horizon Limited, as part of a large scale cost cutting programme on 31 May 2018. He had been employed by Horizon Limited for a total period of 18 complete years. On being made redundant Thomas received the following: A €120,000 ex-gratia payment €22,200 respect of his statutory redundancy entitlement A €4,000 loan owed by Thomas to his employer was written off Thomas agreed to purchase his company car for €8,000. Its market value on 31 May 2018 was €14,000. Horizon Limited agreed to fund re-training costs for Thomas of €2,500. Thomas's final pay check included €2,500 of holiday pay and €1,000 pay in lieu of notice (provided for under Thomas's employment contract). Thomas was also a member of Horizon Limited's Revenue-approved pension scheme. At 31 May 2018, he received a tax-free lump sum payment of €800. Thomas had not received any termination payments on cessation of prior employments. Thomas earned Schedule E income of €45,000 (excluding holiday pay and pay in lieu of notice) in the period 1 January 2018 to 31 May 2018 Thomas's gross Schedule E income for the previous three tax years was: Gross Schedule E Income 2015 € 86,000 2017 € 2016 € 92,000 100,000 Calculate the taxable portion of Thomas's redundancy lump sum. Thomas is considering commencing a trade post his redundancy. Explain to Thomas the basis of assessment for businesses in the first three years of trading. Jack was made redundant by his employer Horizon Limited, as part of a large scale cost cutting programme on 31 May 2018. He had been employed by Horizon Limited for a total period of 18 complete years. On being made redundant Thomas received the following: A €120,000 ex-gratia payment €22,200 respect of his statutory redundancy entitlement A €4,000 loan owed by Thomas to his employer was written off Thomas agreed to purchase his company car for €8,000. Its market value on 31 May 2018 was €14,000. Horizon Limited agreed to fund re-training costs for Thomas of €2,500. Thomas's final pay check included €2,500 of holiday pay and €1,000 pay in lieu of notice (provided for under Thomas's employment contract). Thomas was also a member of Horizon Limited's Revenue-approved pension scheme. At 31 May 2018, he received a tax-free lump sum payment of €800. Thomas had not received any termination payments on cessation of prior employments. Thomas earned Schedule E income of €45,000 (excluding holiday pay and pay in lieu of notice) in the period 1 January 2018 to 31 May 2018 Thomas's gross Schedule E income for the previous three tax years was: Gross Schedule E Income 2015 € 86,000 2017 € 2016 € 92,000 100,000 Calculate the taxable portion of Thomas's redundancy lump sum. Thomas is considering commencing a trade post his redundancy. Explain to Thomas the basis of assessment for businesses in the first three years of trading.
Expert Answer:
Answer rating: 100% (QA)
Redundancy is one of the most contested and controversial aspects of employment especially with regards to economies with unfavourable economic climates Many employers may sometimes be faced with the ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
April Corporation in its first three years of operation paid out the following dividends: Year 1: 0 Year 2: $27,000 Year 3: $94,000 Given that April has 2,800 shares of $100 par 8% cumulative,...
-
Marble Corporation in its first three years of operation paid out the following dividends: Year 1: $0 Year 2: $29,000 Year 3: $86,000 Given that Marble has 2,900 shares of $104 par 10.0%...
-
1. In its first three years of operation, Idealab recruited entrepreneurs to its incubator who had business experience, but who did not know much about the Internet. In about 300 words, explain what...
-
1. What responsibility does an organization have to ensure that its suppliers and business partners behave ethically? To whom is this responsibility owed? 2. How can an organization monitor the...
-
Using the BNA tax service, identify the number of the BNA portfolio for the following subjects. a. Innocent spouse relief. b. Accounting methods. c. Involuntary conversions. d. IRAs. e. Deductibility...
-
Given that the ionization energy of F2- is 290. kJ/mol, do the following. a. Calculate the bond energy of F2-. You will need to look up the bond energy of F2 and ionization energy of F2. b. Explain...
-
Plaintiff grounds manager sued a manufacturer, Monsanto, alleging that herbicide use caused his non-Hodgkins lymphoma. The jury awarded the plaintiff \($39.3\) million in compensatory damages and...
-
The Garrett Company has the following transactions during the months of April and May: The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO...
-
Why does the probability in this maximization problem become theta hat? Suppose we try to implement this social choice function. Assume that the buyers are expected utility maximizers. We now ask: If...
-
The trial balance of Alagoass Boutique at December 31 shows Inventory R$21,000, Sales Revenue R$156,000, Sales Returns and Allowances R$4,000, Sales Discounts R$3,000, Cost of Goods Sold R$92,400,...
-
A rectangular page in a text (with width x and length y) has an area of 24 in., top and bottom margins set at in., and left and right margins set at 1 in. The printable area of the page is the...
-
What are the implications of open innovation strategies for reshaping traditional approaches to value creation and competitive positioning within ecosystems of collaborators and competitors?
-
Question: Since December 15, 2007, Decree No. 32/2007/NQ-CP officially takes force and starts helmets when sitting on motorbikes and motorbikes. This has greatly affected the business activities of...
-
In the past couple of decades, workplace violence, specifically gun violence, seems to be more pervasive within the United States. Using your HR hat, how could an HR shop within an organization help...
-
Mada Seghete of Branch ( www.branch.io ) has literally written a handbook on mobile growth in the cross platform age. In the attached 18-minute Ted Talk, she will shares the mobile strategies that...
-
What strategies can be employed to foster a culture of ethical mindfulness and moral courage within organizations, enabling employees to navigate ethical challenges with integrity and moral...
-
The section on Community Impacts of my project should address the following topics (check all that apply): Group of answer choices Changes in community composition Direct impacts of management...
-
Write a while loop that uses an explicit iterator to accomplish the same thing as Exercise 7.3. Exercise 7.3. Write a for-each loop that calls the addInterest method on each BankAccount object in a...
-
From the trial balance in Figure, complete a worksheet for Jacks Hardware. Assume the following: a/b. Ending inventory on December 31 is calculated at $320. c. Insurance expired, $150. d....
-
The partnership of Jackson, Rackley, Surber is being liquidated. All gains and losses are shared in a 3:2:1 ratio. Before liquidation their balance sheet looks as follows: Journalize the entries...
-
On April 24, 201X, Firemen Corporation declared a 4% stock dividend distributable May 18 to stockholders of record on May 8. Currently Firemen has 6,800 shares of common stock issued and outstanding....
-
Using all the tips presented in this chapter, write your rsum. Aim it at a full-time job, part-time position, or internship that you researched online. Attach the job listing to your rsum. Also...
-
What is the imperative mood, and why is it preferred over the indicative mood?
-
Can workers today be successful if their writing is and remains poor? What could be the career fallout for someone who is unwilling or unable to train to become a better communicator?
Study smarter with the SolutionInn App