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Redundancy

Mr I Wheeldon, Harrogate

"I had honestly never heard of Directors claiming redundancy but I made a claim and this pay out has made a huge difference."

Most Directors are not aware that they could be eligible for a redundancy payment from the Government when their company closes.

It is a common misconception that Directors have no right to claim redundancy but just like any other employee (regardless of your shareholding or ownership of the company) you may be eligible to claim and also receive any outstanding wages or holiday pay you are owed.

Redundancy payments would normally be met by the company but if the business is insolvent and unable to meet its liabilities the Redundancy Payments Office will administer the claim instead and pay the money from the National Insurance Fund.

Very few Directors are unaware of their statutory entitlements when they close their company and thousands are missing out on substantial payments (these are subject to your individual circumstances and not all Directors will qualify) from the National Insurance Fund.

The maximum redundancy payment is £15,750 (plus outstanding wages etc) and these funds are personal to you and can be utilised as you choose.

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