Redundant Workers May Be Eligible For Tax Credit

Redundant Workers May Be Eligible For Immediate Tax Credit

NZ Tax Refunds is advising workers made redundant to apply for a tax credit immediately, as they are may be eligible for a sizable refund.

Managing Director of NZ Tax Refunds Cilla Hegarty says people who are made redundant often don’t realise they may be entitled to this tax credit.

“Redundant workers are typically dealing with stress and a number of other issues, so the last thing they are thinking of is a tax refund,” she says.

“But the reality is these people are probably due a tax credit now - they don’t have to wait until the end of the financial year. As soon as a worker is made redundant there is a government incentive to apply for tax credits up to the value of $3,600. These redundancy payments could have been taxed at almost 40%.”

NZ Tax Refunds, New Zealand’s specialist online tax refund company, provides a no-risk service for clients. Its system assesses whether an individual is eligible for a tax refund and if so the company applies on their behalf and charges a modest fee up to 19.5 per cent of the refund.

Cilla Hegarty says the latest unemployment figures for the June 2009 quarter show the unemployment rate rose to 6%, its highest level since the September 2000 quarter. The number of people unemployed now stands at 138,000

“A significant number of people now registered as unemployed, are probably due a tax credit if they were made redundant.”

Cilla Hegarty says one of its clients recently applied through NZ Tax Refunds for redundancy credits and was very pleasantly surprised with the outcome

“This client had worked for the same company since leaving school. After 27 years with the company, he was made redundant. He received $30,000 in redundancy and we were able to add a further $1,700 to this in redundancy credits,” she says.

“This tax credit really helped our client at a time when every cent mattered,” she added.

Cilla Hegarty says in this instance the money was paid out to her client within 10 working days.

ENDS

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