Directors Redundancy Claim
Directors Redundancy Claim and how to then proceed?
As a director of a UK limited company, you may therefore claim directors redundancy payment, the same as any employee entitled to redundancy. Once you’re claim submitted, then the process commences and paid through the governments National Insurance Fund and Redundancy Payment Service (RPS).
However, claims can be complex and making the wrong disclosures on both the RP1 and RP3 forms can lead to claims being rejected. Therefore, HBG Advisory can we help you and make sure that your claim doesn’t get rejected and therefore your claim maximised, processed correctly and therefore payments processed.
Directors, however, regularly under claim their redundancy or particularly do not claim, when placed into Liquidation. However, we can help you maximise your claim from Redundancy Payment Service (RPS), this will be done alongside the Insolvency Practitioner to make sure 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?
To be able to make a claim as a company director for redundancy, you must, however, first meet set criteria:
- Status as an employee paid via PAYE Payroll
- You have a contracts of employment (As employees have employment contract)
- You have been employed on the payroll for at least 2 years continuously
- A company entering Liquidation or must already in liquidation
What am I entitled to and eligibility to claim?
As a director, you are therefore entitled to claim for redundancy:
- Statutory redundancy payment
- Lieu of notice pay
- Unpaid wages
- Holiday pay
Claims For Directors
To begin with, therefore, establish if your company is Solvent? If so, then why are you proposing, therefore, shutting your company? Perhaps consider a Members Voluntary Liquidation? However, if your company is insolvent? Then consider a Creditors Voluntary Liquidation (CVL). This formerly shuts down your company while dealing with any outstanding issues. A Liquidation requires the appointment of a Licensed Insolvency Practitioner.
Many directors consequently, therefore, do not opt for insolvency due to rescue options Insolvency fees. Company dissolution compared to Insolvency has little cost to closure, though does not finalise the problem. Therefore look at closure options via Insolvency really as Insurance so that nothing will haunt you later.
In summary, therefore, opting for company dissolution invalidates your claim as an employed director which stops any director redundancy pay. Therefore the potential loss to each director may have an average claim of £9000 (Nine Thousand Pounds Approx).
To explain further view on how you are able to claim, click on Redundancyclaim.com and meet the team At HBG Advisory.