Directors Redundancy Claim
Can Directors Claim Redundancy Pay?
Being a director of a UK limited company, you may therefore claim directors redundancy payment, the same as any employee entitled to redundancy. Once you submit your claim, the process begins and is paid through the government’s National Insurance Fund and Redundancy Payment Service (RPS).
However, claims can be complex, and wrong disclosures on both the RP1 and RP3 forms can lead to rejection of claims. Therefore, HBG Advisory can help you ensure your claim doesn’t get rejected, and therefore your claim is maximised, processed correctly, and therefore payments processed.
Directors regularly under claim their redundancy, or particularly do not claim, when placed into liquidation. However, we can help maximise your claim from the Redundancy Payment Service (RPS). This will be done alongside the Insolvency Practitioner to ensure claims paid out without the need to go to a costly tribunal.
Remember, as a director, you were an employee of the company.
Director Redundancy Claim – Criteria For Claiming Redundancy?
However, to make a claim as a company director for redundancy, you must first meet the set criteria:
- Status as an employee paid via PAYE Payroll;
- You have a contract of employment (as employees have an employment contract);
- You have been employed on the payroll for at least 2 years continuously;
- A company entering liquidation or must already be in liquidation.
What am I entitled to and eligible to claim?
As a director, you can therefore claim redundancy:
- Statutory redundancy payment
- Lieu of notice pay
- Unpaid wages
- Holiday pay
Claims For Directors
First, check if your business is Solvent? If so, why do you want to close your business? Perhaps consider a Members Voluntary Liquidation (MVL)?
But if your business is insolvent? Then consider reading what is a Creditors Voluntary Liquidation (CVL). This formerly shuts down your company while dealing with any outstanding issues. Liquidation requires the appointment of a licensed insolvency practitioner.
Many directors therefore do not opt for insolvency because of rescue options. Insolvency fees. Company dissolution compared to Insolvency has little cost to closure, though it does not finalise the problem. Therefore, study closure options via Insolvency, as Insurance, so that nothing will haunt you later.
Sp, opting for company dissolution invalidates your claim as an employed director, which stops any directors redundancy pay. Therefore, the potential loss for each director can be an average claim of £9000 (Nine Thousand Pounds Approx.).
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