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Can you claim redundancy as a director without being on the payroll?

Can you claim redundancy as a director without being on the payroll?

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.

Redundancy claims are a very professional company, Caroline who is dealing with our case is friendly, compassionate and very clear in explaining everything during this difficult time. The service we have received has been amazing, Thank you.
Tina Hill
Tina Hill

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.

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