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Director redundancy is not something which is widely known or understood, even among accountants and others working in the professional services industry. However, being able to advise a struggling client on director redundancy has many benefits for both you as an accountant and also for your clients. Depending on the length of service a director has with their company, a redundancy pay-out following the liquidation of their limited company could equate to a substantial windfall, with an average amount of £9,000 claimed.

An accountant who makes their client aware of this potential entitlement will be viewed more favourably than one who kept quiet and saw them go under and lose out on a significant payment. For you, assisting your clients with a redundancy payment could help you retain their business in the long-term; not only are you ensuring they receive good advice they will be happy with, but the money acquired through redundancy may even be used to fund a new business which you could continue to assist with.

The most important thing to remember is that director redundancy is not a niche entitlement open to a select few; in fact the vast majority of directors whose company has been incorporated for at least two years and who are paid a regular salary through PAYE are likely to qualify. The chances are you have many clients on your books who meet the minimum requirements, and should their company’s finances take a turn for the worse, they would be eligible to make a claim. By arming yourself with the facts about director redundancy means you are in a position to advise a struggling client on their potential right to redundancy following the liquidation of their business, giving them the full picture and helping them make the correct choice between liquidation and striking off.

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

By working with Redundancy Claims UK to assist your clients in claiming director redundancy, you will be dealing with a company with over 40 years’ insolvency experience and a wealth of knowledge in all areas of redundancy. We can help maximise your clients’ claims and manage the whole process from start to finish. Call our team on 0800 063 9261 to learn more about how we can help. RCUK are Authorised and Regulated by the Financial Conduct Authority. Authorisation No 830522. You can check our registration here.

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