Contracts had not been costed properly and the accounting system was non existent. The company was leaking money and when we scratched the surface it was clear that large debts had built up.
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."
Finding the money to close your company is never easy and one of the biggest challenges Directors face.
It probably sounds too good to be true but The Insolvency Practice have identified a solution that could help to meet the cost of your insolvency fees and leave you with an additional lump sum as well.
Most Directors are not aware that they could be eligible for a redundancy payment and could be due a substantial payment in just 6 – 8 weeks from making the application.
It is a common misconception that Directors have no right to claim redundancy. Operating as a Director does not preclude you from making a claim.
As with any other employee (regardless of your shareholding or ownership of the company) you may be eligible to claim a redundancy payment and also receive any outstanding wages or holiday pay you are owed.
Redundancy payments are usually met by the company but if the company is insolvent and unable to meet its legal liabilities the Redundancy Payments Office will administer the claim instead and pay the money from the National Insurance Fund.
Even if your company has no debts and no assets and you simply want to cease trading you could still claim redundancy and the associated payments.
Instead of dissolving the business it often makes more sense to liquidate the company so that you can claim any wages and holiday pay owed to you as well as the redundancy pay you are entitled to from the government.
Very few Directors are unaware of their statutory entitlements when they close their company and thousands are missing out on a payment from the National Insurance Fund. These payments are subject to your individual circumstances but can be substantial.
The maximum redundancy payment alone can be up to £15,750. These funds are personal to you and the settlement will be made to you to utilise as you choose. You could use this to fund the liquidation of the business, offset it against any personal guarantees or use it to settle any other personal debts or liabilities.
Unfortunately, many Insolvency Practitioners are missing this legal right to potential funds. It is a complex area of employment law but given the potential sums involved we always recommend Directors check their eligibility.
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If you are being threatened by creditors and have outstanding bills, you need to take immediate action. If the problem is not addressed quickly it may be too late to save your business and you could become personally liable for the debts. At The Insolvency Practice we can ensure you remain protected and show you the best way to clear your business debt.
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