Before you can claim director redundancy you must meet a strict criteria regarding your employment terms in the years and months before your company was formally closed. One of these points relates to how you were paid or otherwise took money from the business. To be eligible for director redundancy you must have been on the payroll and taken a regular salary through the PAYE system.
The salary taken can have been at any level, even below minimum wage, and this does not have had to have been the only way you took an income; a combination of PAYE salary topped up with dividends will still count. If, however, you extracted money solely through dividends then unfortunately you will not qualify for redundancy pay. This is because compensation through a redundancy payment is designed for employees (who may also be directors) of a company. By not taking a regular salary through PAYE it is difficult to demonstrate your status as an employee.
For more information on director redundancy, or to see if you are eligible, speak to the specialists at Redundancy Claims UK. Our experienced team will be able to qualify your claim and let you know how much you may be in line to receive. Call Redundancy Claims UK today on 0800 063 9261 to take the first step. RCUK are Authorised and Regulated by the Financial Conduct Authority. Authorisation No 830522. You can check our registration here.
Does accepting a new job offer before the date of redundancy prevent a director making a claim for redundancy to the RPS
If you are looking to close your limited company, you may have attempted to strike it off by submitting a DS01 form to Companies House. This process is also sometimes referred to as dissolving or company dissolution.
A Creditors’ Voluntary Liquidation (CVL) is an official procedure whereby a company’s assets are liquidated in order to pay creditors. It’s typically initiated by directors when their company becomes insolvent and there is no hope of business recovery.
May I take this opportunity to thank you and your team for all your professional help in securing for myself and my wife, redundancy pay. I would have no hesitation in recommending RCUK to assist them.Tom Harrison Managing Director of a construction company