As a small business owner you may be familiar that your employees may be entitled to redundancy should your company cease trading and they consequently lose their jobs. However, have you ever given any thought as to what would happen to you in that situation? What many company directors don’t realise is that, as well as being a director, it likely that you are also classed as an employee of your company too. In this instance should your company enter insolvent liquidation proceedings then you will be in line to receive a redundancy payment just as your employees will.
The qualification criteria is the same as for traditional employees, meaning that you must have been taking a regular salary from the company for a minimum of two years through the PAYE system. The amount you may be entitled to depends on a host of factors including length of service, your age, and the salary taken from the business during this time; the average amount claimed by company directors is £9,000.
In order to receive a redundancy payment following the liquidation of your company, you will need to submit an application to the Redundancy Payments Service (RPS) who will assess your eligibility and right to claim. Redundancy Claims UK can be there to help you with this process every step of the way. We are able to qualify your claim over the phone and, should you have a legitimate claim, we will be happy to tell you how much you may be entitled to. With many years working with the RPS we know exactly what it is they are looking for when evaluating a claim and we will do all we can to maximise your total claim amount.
If your company is experiencing financial difficulties and you are considering closing it down and moving on, ensure you explore your potential entitlement to director redundancy before you make a decision on how to proceed. Start by using our redundancy calculator to discover how much you may be in line for, or alternatively you can speak to our team on 01625 462 587 who will be happy to qualify your claim over the phone and explain the process in more detail.