Articles

Please find below the following letter content sent to the Federation of Small Businesses (“FSB”) to inform them of the recent Redundancy Payment Policy to reject director applications on employment status. The FSB will now be meeting the RPS with a view to establishing their own understanding of the situation.

If you have been made redundant during Covid-19, understand your director redundancy pay entitlement and the implications on your pension and tax position.

Employees and company directors can be made redundant while on furlough due to the Covid-19 pandemic and may claim director redundancy pay.

Can you claim director redundancy pay as part of a Creditors’ Voluntary Liquidation (CVL) if you pay yourself through Pay As You Earn (PAYE) or Dividends?

Company directors can claim redundancy pay, however, does HMRC have the power to use your director redundancy payment to offset outstanding tax debts?

During these difficult trading times CFS have taken the opportunity to develop and improve our service offering to clients and to see how we can best support IPs.