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Frequently Asked Questions


Director redundancy can be a complex issue so we're here to break down the jargon and provide the advice you need. Our Frequently Asked Questions (FAQs) below are a good place to start but you can contact us for FREE specific advice.

How do you claim?

Speak to Redundancy Claim on 0800 063 9261

How long after the liquidation can I make a redundancy claim?

A claim can be made up to 6 months after the employee last worked. In certain circumstances the period could be extended up to 12 months.

How long does the process usually take from claim to payment?

A payment should be received by the director 4-6 weeks after the creditors meeting subject to you returning the necessary paperwork.

How much will you get?

The maximum available for redundancy and other statutory entitlements is as follows: Redundancy pay - £14,370 capped at 20 weeks Notice pay - £5,748 capped at 12 weeks Unpaid holidays – £2,874 capped at 6 weeks Unpaid wages - £3,832 capped at 8 weeks Payments are limited to £479.00 per week.

Must you pay tax on a redundancy payment?

You don’t pay tax on a statutory redundancy. However, tax and NI are deducted from unpaid holidays and unpaid wages.

What would prevent a redundancy claim being approved?

There are many reasons a claim can be refused as follows: Been incorporated for less than two years You leave before the company has closed Your employer has offered you a suitable job (TUPE)
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