When it comes to claiming director redundancy there are strict time scales in place which determine when you must apply by. Ideally you should submit your claim for director redundancy during the liquidation of your company. Although the redundancy payment will not crystallise until the date of the liquidation, you can still complete the groundwork ahead of time so that the payment is available as soon as possible following the company’s closure.
However, in many instances directors complete the liquidation of their company long before they hear about their potential right to claim redundancy. This is because director redundancy is not widely understood, even among some accountants and other finance professionals. Due to this you may not have been told about director redundancy when discussing the closure of your company.
If your company has already been liquidated, time is very much of the essence if you are considering submitting a redundancy claim. To stand the best chance of success your application should be completed within six months of the liquidation of your company; in certain situations this can be extended to 12 months. If the liquidation was finalised over a year ago, however, your window for claiming redundancy will have expired and you will no longer be able to make a claim.
If you are unsure when your company was liquidated you can contact the insolvency practitioner who handled the case, or alternatively you can search for your company on the Companies House register and view the liquidation date from here.
In addition to the 12 month time frame, there are other eligibility requirements you must meet:
If you are considering liquidating your limited company you should speak to Redundancy Claims UK to check your eligibility for director redundancy. Our expert team can quickly ascertain if you are likely to have a claim and will also be happy to calculate how much you may be in line for. With over 40 years’ insolvency experience and many years working closely with the Redundancy Payments Service we know exactly what they are looking for and can complete your application to maximise your chance of success. Contact us today on 0800 063 9261 to start the process or to learn more. RCUK are Authorised and Regulated by the Financial Conduct Authority. Authorisation No 830522. You can check our registration here.