Frequently Asked Questions

Can a director claim redundancy pay if their company was in a CVA before liquidation?

If your company goes into liquidation following a Company Voluntary Arrangement (CVA), you can claim both director redundancy pay and notice pay from the date of the liquidation. However, your claims for unpaid wages and holiday pay will from the date the company went into the CVA. But because your claim for Holiday pay can only go back 12 months, this part of a directors employment claim is often lost.

CFS Redundancy Payments Ltd is a claims management company (CMC) authorised and regulated by the Financial Conduct Authority to assist with directors redundancy claims arising from company liquidations. Only a CMC with FCA regulation can process directors’ redundancy claims. We will use our vast experience to ensure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth. Currently, the maximum amount of a director’s total claim is £29,006.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

What would prevent a directors claim for directors redundancy pay from being approved?

There are a few reasons why a claim for directors redundancy pay may be refused. The most common ones are, the director was not actually on the payroll and was only paid via dividends; the company traded for less than 2 years before it went into liquidation; or your employment has been transferred, using TUPE regulations, to the new company which bought the assets and business from the old company.

Other reasons as to why a director redundancy claim may not be valid, include the claim not being made to RPS within 6 months of the redundancy occurring, or the company not entering into insolvent liquidation.

Looking more in depth at these reasons. For a director to make a successful claim for director redundancy pay, they need to have been classed as an employee of the company, as well as being the director. This means that the director must have been taking a regular wage or salary that was paid through the company payroll and through the company’s PAYE system. If the director has not been paying themselves this way or has instead been withdrawing money from the company solely through dividends or via their directors loan account, they will not have a valid claim for director redundancy pay and the other statutory entitlements, which are only available to genuine employees.

To qualify for director redundancy pay, directors who were also company employees, meaning paid through the company payroll and PAYE system, need to have a minimum of 2 years continuous employment with the company. This means the company must have been incorporated and trading for more than 2 years. In some cases, a limited company may be formed to take over the sole tradership business which the director had previously been running. However, even though there is often a going concern transfer of the old business to the limited company, the amount of time for which the director was in business as a sole trader will not count as continuous employment for director redundancy pay purposes, should the new limited company subsequently fail and enter into insolvent liquidation. The reason for this is that a sole trader cannot be an employee of their own business. This also applies to a partnership business where the old partners form a limited company to take over their old business.

If the company’s business is sold prior to the date of the liquidation, and both the directors and employees are offered jobs by the buyers of the business, then TUPE legislation will normally mean that there has been a transfer of undertakings to the purchaser and so an actual redundancy situation will not have in fact occurred. Therefore, all employment contracts whether written, verbal or implied, will automatically transfer to the purchaser and there will have been a deemed continuation of employment. This means that if the company is forced into liquidation, or bankruptcy in the future, the number of years employment for the directors (and other employees) have in fact accrued with the original company, and will be carried forward into the new business for calculating director redundancy payments.

Both directors and other employees must make claims within 6 months from the date of redundancy occurring. This is often held to be the date that the company ceased trading, although occasionally, it can be the date the company formally entered liquidation. Redundancy and any other associated employment claims cannot be submitted to the Redundancy Payment Service (RPS) until the company is placed into insolvent liquidation, and the liquidator has received a Case Number (CN) reference for the company from RPS. So, in cases where trading ceased and redundancies occurred more than 6 months before the company officially entered into liquidation, future redundancy claims could be in jeopardy. However, so long as directors (and employees) who have been made redundant give the company (or the advising insolvency practitioner) written notice of their intention to claim director redundancy pay within the 6 months of it occurring, then they will be able to make a claim in the future. Other claims, for example, unpaid holiday pay, must be brought within 12 months of the date of redundancy, so this is often viewed as the long stop date for redundancy claims and the other associated employment claims being made and submitted to RPS as all claims have to be made at the same time on the same online claim form, known as the RP1.

For you to be able to claim director redundancy pay, the company must be placed into insolvent liquidation. This is either a Creditors Voluntary Liquidation (CVL) or a Compulsory Liquidation (CMP). Both types of insolvent liquidation mean that the remaining assets of the business being sold and the proceeds used to pay for the costs of liquidation, and if anything is remaining, to pay a dividend to the creditors. Once this has been done, the company can formally be dissolved and removed from the Companies House register at which point the company will cease to exist. In some circumstances a company can be dissolved without first being liquidated. However, to qualify for dissolution, the company must have no creditors, i.e. it must be solvent. For many, the benefit of dissolving a company over liquidating it, will come down to cost. While a CVL could cost around £5,000, dissolving a company could cost as little as £10. However, not only does a dissolution not adequately deal with any outstanding company creditors, but it will also make you ineligible for director redundancy pay. With an average claim for director redundancy pay coming in at around £12,000, you could find yourself in a much better position financially by liquidating your business, even accounting for the cost of the CVL. If you are considering closing your insolvent company, it makes good sense to get an idea of the amount of director redundancy pay you may be able to claim before liquidating it before you make a final decision on how to proceed.

From the above, it follows on that the company must be insolvent for both the directors and employees to qualify for redundancy and directors redundancy pay. Due to directors redundancy pay being designed to compensate an individual in the event that their job role no longer exists, only directors of insolvent companies are eligible to claim. Should a director decide to close a solvent company this is viewed as resignation rather than director redundancy. However, it should be remembered that the onus for making redundancy payments to staff lies with the company. Therefore, it is not unheard of for the potential cost that comes with making redundancies to tip a company over from a state of solvency into a position where the directors could possibly find themselves trading whilst insolvent.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How is director redundancy pay calculated?

Director redundancy pay, is based on your gross weekly earnings before tax. By law, directors who are eligible are entitled to claim half a week’s pay for each full year of employment under 22 years of age; one week’s pay for each year of employment between the ages of 22 and 41 years; and one and a half week’s wage for each year of employment for over 41 years of age.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

What is meant by Transfer of Undertakings Protection of Employment (TUPE)?

The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) protects employees when a business is transferred from one owner to another. This could occur to an insolvent company if the insolvency practitioner sells the whole of the business or certain assets of the business to a purchaser. Employees of the insolvent company become employees of the new owner on the same set terms and conditions as they had previously.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can directors who were being paid less than minimum wage claim director redundancy pay?

Due to a policy decision taken by the Redundancy Payments Service (RPS) on 30 September 2022, the redundancy claims of directors who were paid at less than National Minimum Wage will no longer be approved. Consequently, we are finding that all submitted claims are being rejected by RPS where the director was paid at less than NMW.

RPS advise that a key factor taken into consideration, when assessing a claim, is whether a director remunerated themselves as an employee or as an office holder in their capacity as director. As per the National Minimum Wage Act (1998) a director must pay themselves the National Minimum Wage (NMW) if they are an employee. However, a director is exempt from the NMW if they choose to be remunerated solely as an office holder and not class themselves as an employee or worker.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Who can assist me with my directors redundancy claim?

Anyone who is acting for or advising an individual on any employment related claim, and charging for doing so, must be regulated by the Financial Conduct Authority. This is because they are holding themselves out as a claims management company by acting as an intermediary between the former director or employee and their former employer who will be represented by the liquidator. This covers independent HR consultants, most of whom are not FCA authorised but definitely should be.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Do I need to have a contract of employment to be able to make a claim director redundancy?

There is no legal requirement at all for a director of a limited company to have a written employment contract with the company even when the director is the sole shareholder and therefore the 100% owner of the company. And so even without a contract of employment the director can still claim for director redundancy and all of the other statutory entitlements in the event of company liquidation. Employment contracts can be written, verbal or implied. They are all legally binding to just the same degree. It is however very useful if there is an employment contract available or at least a summary of the main terms of your employment. Based on the terms and conditions of your employment by the company, we can help you to draft a summary document containing the main features of your employment which will be acceptable to Redundancy Payments Service when processing your director redundancy claim.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Where do directors redundancy claims get paid from?

Directors who can prove their status as employees of their company are eligible to make a director redundancy claim and other associated employment claims from the National Insurance Fund (NIF). This is a Government fund run and administered by the Redundancy Payments Service (RPS) https://www.gov.uk/redundancy-payments-helpline which is part of the Insolvency Service https://www.gov.uk/government/organisations/insolvency-service

When RPS has paid out a director redundancy claim it will submit a claim for this amount to the liquidator. Their claim will rank alongside the claims of the other creditors in the liquidation. It does not affect the director at all if there are no funds in the liquidation to pay a dividend to the creditors. The claim will have already been paid out and the debt due to NIF will just get written off.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How does the directors redundancy claim process work?

Here at CFS Redundancy Payments Ltd, we will deal with your directors redundancy claim from start to finish. We will collect all of the information from you by email or phone, and then we will complete your online claim form, known as an RP1 form.

Upon receipt of the RP1, RPS will send a redacted copy of it to the IP (and to us on behalf of the claimant). For every director redundancy claim submitted by us to RPS, the IP is required to submit an RP14A form online. The IP will have access to the company’s payroll records to do this and he will also have a copy of the redacted RP1 form.

The online RP14A form contains the following employee information.

Employee name

CHAMP case reference number (CN)

Employee full name

Date of birth

NI number

NI class

Employment start date

Date notice given

Employment end date

Basic weekly pay

Day of week paid

Owed wages from date(s)

Owed wages to date(s)

Amount(s) of owed wages

Holiday year start date

Number of days holidays owed

Basic weekly pay

In addition to the RP14A, the IP must complete an RP14 form which is information on the insolvent company itself and must include the following information.

Company name

CHAMP case reference number (CN)

Company number

Date of incorporation

Company address

Company PAYE reference

Company directors’ details

Company shareholders details

Details of any associated companies

Did the above take on any employees from the insolvent company?

Number of employees made redundant by the insolvent company

Are any of the above claiming TUPE from a previous business?

Details of any previous business mentioned above

Should TUPE claims be accepted?

Were employees entitled to carry forward unused holidays?

Date of company insolvency

Has there been a transfer of the business?

Details of whom business was transferred to

Date of business transfer

Date the negotiations began

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Will making a director redundancy claims have a bad effect on the liquidation for the director?

If you have a valid claim for director redundancy then this can be submitted to the Redundancy Payments Services and processed for payment along with the other employee claims. When the claims are paid out by RPS, they will lodge a claim in the company liquidation for the amount of all payments made to former employees which will rank alongside the other creditors for the sum owed to RPS. If there are no funds in the liquidation to pay a dividend to the creditors then this will have no impact on your claim or on the liquidation process because your claim will have already been paid out by RPS.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Or email us for more information at [email protected]

Can I make a director’s redundancy claim if the company goes into Administration?

You can claim for director redundancy from your own limited company, even if you were the sole director and the sole 100% shareholder, and you have put your company into administration yourself. If your company does go into liquidation following a period of time in administration, you can claim both redundancy and notice pay from the date of the liquidation. However, your claims for any unpaid wages and holiday pay will be based on the date of the administration.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How will starting a new job affect my claim for directors redundancy pay?

If you begin a new job after being made redundant a director will still be able to claim for director redundancy pay. The fact that an employed director has accepted an offer of employment to begin on a later date, or is intending to leave anyway, will not stop him being entitled to claim director redundancy pay so long as they are made redundant whilst still employed by the company and will not stop them from being entitled to make a claim to the RPS if the company does not pay their director redundancy claim or any other money it owes them.

If for instance you started a new job prior to the date of your redundancy, then this may invalidate your claim for director redundancy pay. This may sound simple and very logical, but if there is to be a sale of the business pre-liquidation, then in some circumstances the employees’ employment contracts will also get transferred to the purchaser and all rights to claim redundancy as part of the liquidation process will be lost. Many people ask the question; How long should a director wait before getting a new job? You should be aware that in all cases were a new job is started following the liquidation process then your claim for notice pay will be reduced by the amount of your new earnings during your statutory notice period, which is one week’s pay for each year of service up to a maximum of 12 weeks. So, if you are offered a new job but truly do want to maximise your claim for statutory notice pay (up to 12 weeks pay) then you should wait until the end of your notice period before starting your new employment.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How quickly after the liquidation starts can I make a claim for director redundancy pay?

You need to start your claim for director redundancy pay within 6 months of being made redundant. If you were employed right up to the liquidation date then you have to start your claim within 6 months following on from this date. You can begin the claim process simply by notifying the liquidator in writing of your intention to claim director redundancy pay at any time within this six month period. If you have done this already, then you don’t have to physically submit the claim until a later date. But it is always best to submit the claim within 12 months of your redundancy otherwise some of the other statutory entitlements may be lost. Having said all of this, it is usual for a company to cease trading several months before the liquidation date and it is often the date that trading ceased that is viewed by the Redundancy Payments Service as the date of director redundancy.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a director have a director redundancy claim against their own limited company?

Put simply, YES they will have a valid directors redundancy claim, so long as they were on the payroll and paid regular wages or a salary by the company. The answer is also YES, you can, if you were the only director of the limited company and still yes you can, even if you were the sole shareholder in the company. A lot of directors whose companies are facing financial uncertainty are unaware of this.

Every director can claim for director redundancy pay, unpaid wages, holiday pay and statutory notice pay, if their own limited company enters into liquidation provided that they were on the company payroll just like any of the staff they may have employed.

As well as being on the payroll you also must:

Work at least 16 hours a week
Work for at least two years under a formal contract of employment
Not be a non-executive director acting only in an advisory capacity
Be owed money by the company

If you are entitled to director redundancy pay then you may also be entitled to receive other payments, such as outstanding holiday pay, unpaid wages and statutory notice pay. This can boost the overall redundancy package that you receive, and potentially help you pay for the formal liquidation process or acquire the company assets from the liquidator to help you to re-start the business.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can all company directors make a claim for directors redundancy pay?

Every company director can claim for director redundancy pay and other statutory entitlements when their limited company enters into insolvency provided that they were genuine company employees.

Until recently the availability of director redundancy was a little known fact. It was widely believed that company directors were unable to claim for director redundancy pay and other statutory entitlements from the Redundancy Payments Service (RPS) because it was usually their actions or inactions which had led to the company’s insolvency and the resultant liquidation. It was also thought to be a no go area where the director was also a shareholder and hence owner of the company.

CFS Redundancy Payments Ltd is here to help all company directors to maximise their directors redundancy claims and other employment claims for statutory benefits. In some circumstances, directors can use their director redundancy claim to pay the liquidation costs or to re-start the business with assets they are now able to buy back from the liquidator.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How does a company director claim for director redundancy pay?

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Who can assist with my personal guarantees?

Here at CFS Redundancy Payments Ltd we can help you with any personal guarantees you may have given for the company’s debts. And remember, not all personal guarantees are legally valid. There are all sorts of ways in which PG’s can be invalid and therefore unenforceable against you. Even for valid guarantees we can often negotiate favourable settlement terms for you so that you can discharge all of your PG liabilities.

Your directors redundancy claim can be used to settle any outstanding personal guarantees you may have. Please read the next FAQ.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can I use my claim for director redundancy pay to settle personal guarantees?

You can use your director redundancy claim to settle any personal guarantees you may have given. Quite often, following company liquidation, directors will have little resources left from to pay PG’s from and many will find it really helpful to be able to use their director redundancy claim to do this. We can help you to negotiate a favourable settlement deal with any of your PG creditors.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can company directors be made personally bankrupt for business debts?

A director cannot be made bankrupt for the business debts of a limited company. This is the whole point of a company having “limited liability”. The position is different if the director has personally guaranteed any business debts. But you will be relieved to know that a director can use their director redundancy payment to settle any personal guarantees given. This is an additional service that CFS Redundancy Payments offer. Initially, we will look into the enforceability or otherwise of the personal guarantee, in conjunction with our legal advisors. You will be relieved to know that many PG’s turn out to be invalid and therefore unenforceable by the creditor against the director. On those rare occasions where the PG proves to be valid, we can look to negotiate a settlement deal with the creditor on your behalf. And as mentioned above, you can use your director redundancy claim as part of the settlement offer.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a director claim for director redundancy pay if their company goes into compulsory liquidation?

If your company has been forced into liquidation by a creditor taking court action, then you will be pleased to know that you can still claim for director redundancy pay. You can also claim for holiday pay, unpaid wages and notice pay. So it does not matter whether the liquidation process has been instigated by you as a company director which is known as a creditors voluntary liquidation, or by one of your creditors taking court action against the company, which is called a compulsory liquidation, you as an employed director, can still make a claim for directors redundancy pay to the Redundancy Payments Service.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can all company directors claim for director redundancy payments?

Yes, every director can claim for director redundancy pay, unpaid wages, holiday pay and statutory notice pay, in the event that their limited company enters into insolvency provided that they were on the company payroll just like any of the staff they may have employed.

Are there any requirements other than being on the payroll must be met to claim for director redundancy, you may ask? You need to have:

Worked under a formal employment contract for a minimum of two continuous years
Worked for at least 16 hours per week
Not been a non-executive director acting simply in an advisory capacity
Be actually owed money by the company in terms of unpaid wages etc

If you are entitled to director redundancy pay you may also receive other payments, such as outstanding holiday pay, unpaid wages and statutory notice pay. This can boost the overall redundancy package that you receive, and potentially help you pay for the formal liquidation process or acquire the company assets from the liquidator to help you to re-start the business.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a company director claim for director redundancy payments if they don’t have a written contract of employment?

There is no legal requirement for a company director to have a written contract of employment with their own limited company. And so even without an employment contract they can still claim for director redundancy pay and the other statutory entitlements in the event of company liquidation. Employment contracts can be written, verbal or implied. They are all legally binding just the same. It is however very useful if there is an employment contract available or at least a summary of the main terms of your employment. Based on the terms and conditions of your employment by the company, we can help you to prepare a summary document containing the main terms and conditions of your employment in a form that is acceptable to RPS.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How much will my director redundancy claim be for?

Please click on this link to access our free to use director redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Currently, the maximum amount of a director’s total claim is £29.007.

This is made up of the following separate claims.

Directors Redundancy Pay – a maximum of 30 week’s pay, always tax free.

Directors Unpaid Wages – up to 8 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Holiday Pay – up to 6 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Notice Pay – a maximum of 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working in a new job.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can directors claim for unpaid holiday pay as well as directors redundancy pay?

We can help directors to submit a directors redundancy claim as soon as their company goes into liquidation or administration. We can deal with all parts of your directors redundancy claim from beginning to end, so don’t you worry at all.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can all directors claim for directors redundancy pay?

Company directors can claim for directors redundancy pay, and other statutory benefits, in the event of company liquidation or administration just as long as they are on the payroll along side the other employees. Some directors are not aware of this fact and so we are here to help all directors to maximise their directors redundancy claims and other employment claims for their statutory entitlements. On some occasions, directors can use their directors redundancy claim to pay the liquidator’s costs or to buy back company assets so they can re-start the business and secure their future.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a director make a claim for arrears of wages as well as for directors redundancy pay?

As soon as a liquidator is appointed, we at CFS Redundancy Payments Ltd will help you to claim your maximum entitlement for directors unpaid wages. You can claim for up to 8 week’s unpaid wages. These can be the 8 weeks where you would have earned the most money.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Is it true that all company directors can claim directors redundancy payments?

Company directors can claim for directors redundancy pay, unpaid wages, holiday pay and notice pay in the event that their limited company enters into insolvency provided that they were paid a regular wage or salary through the company payroll. Many years ago this was a little known fact. It was widely believed that company directors were unable to claim directors redundancy pay and other statutory entitlements from the Redundancy Payments Service (RPS) because it was usually their actions or inactions which had led to the company’s insolvency and the resultant liquidation. It was also regarded as impossible to claim director redundancy pay, where the company director was also a 100% shareholder and hence sole owner of the company.

CFS Redundancy Payments Ltd is here to help all company directors to maximise their directors redundancy claims and other employment claims for their statutory entitlements. In some circumstances, company directors can use their redundancy claim to pay the liquidation fees or to re-start the business with assets they are able to buy back from the liquidator.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Were company directors able to be made redundant when they were on furlough?

Company directors and other employees could be made redundant whilst on the UK government’s furlough scheme and they were therefore entitled to claim director redundancy pay in the event that their company was forced into insolvent liquidation.

If this happened to you then please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How long does it take for director redundancy claims to be paid out by RPS?

RPS tries to process directors redundancy claims within 6 weeks from the date of receipt by them of your directors redundancy claim. So, the sooner we submit your directors redundancy claim to RPS, the quicker the money will be sitting in your bank account. Generally speaking, the whole directors redundancy process takes around 6 to 8 weeks. So, if you instruct CFS Redundancy Payments Ltd today by calling us on 0161 533 0232, your director redundancy claim could be settled sooner than you think. We will deal with your entire director redundancy claim from start to finish. Based on the information you give us, we will submit your RP1 form which details your claims for Redundancy pay, Unpaid wages and Holiday pay. Once the first part of your director redundancy claim has been processed for payment by RPS we will then submit your Notice pay claim. Usually, all 4 parts of your director redundancy claim are processed and paid out by RPS within 8 weeks following the submission of your RP1 form.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a director claim for notice pay as well as directors redundancy pay?

We will prepare your notice pay claim at the end of your statutory notice period, which is one week’s notice for every year of service up to a maximum of 12 weeks. As it is a statutory entitlement it does not matter what it says about the length of your notice period in your employment contract, should you have one.

We will complete a second online application to get this money for you. We can only complete this second application after the time your notice period has finished. By this stage you should have already received your director redundancy payment, your unpaid wages and your holiday pay.

You don’t have to worry about keeping track of when your notice period ends. We will do this for you and then contact you when the application can be made.

Everyone’s notice period is different, dependent on their length of service so don’t worry if we contact some of the former directors before we contact you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can company directors claim for directors redundancy payments if their company went into liquidation more than 6 months ago?

Directors can claim directors redundancy pay so long as they notified the company as their employer, or the liquidator, of their intention to claim director redundancy pay at any time during that 6 month period. Quite often directors are able to find an email or note they sent to one of their co directors or the company accountant or the liquidator, stating that they are planning on claiming director redundancy pay at the appropriate juncture once the liquidation process has started.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can company directors carry forward unused holiday to the following year?

Company directors are often able to carry forward unused holidays if their employment contract with the company allows them to do this. However, many company directors do not have formal written contracts of employment and so we need to advise you what is likely to happen in such situations.

The Covid-19 pandemic resulted in the loss of many jobs. As a result, the government has passed a number of measures to support employers and also to ensure that employees are given a certain level of protection. One such measure relates to statutory holiday and the difficulty in taking annual leave during the Covid-19 pandemic and particularly during furlough. This situation applies to both company directors and all other staff and employees.

The Working Time Regulations 1998 provides that the statutory basic annual leave entitlement of four weeks may only be taken in the leave year to which it relates. Employers and their employees can agree to carry over any additional statutory leave into the next leave year only by way of a relevant agreement. However, as many directors do not have a contract of employment, directors have rarely been able to carry over any statutory leave.

However, in certain circumstances we can help company directors to justify their entitlement to carry forward unused holidays into the following year and on occasions into the holiday year after that. It should be noted that the maximum holiday pay claim allowed by Redundancy Payments Service is for 6 weeks pay, restricted to the statutory maximum of £571 per week.

On 26 March 2020, the Working Time (Coronavirus) (Amendment) Regulations 2020 came into effect which amends and updates the provision of WTR 1998 set out above. Where it was ‘not reasonably practicable’ for the worker to take some or all of his or her leave in the relevant leave year as a result of the effects of Covid-19, he or she is entitled to carry forward such untaken leave. The ‘effects of Covid-19’ include the effects on the worker, the employer or the wider economy or society. This amendment also applies to company directors who are looking to make a claim for directors redundancy pay.

If the employee/director can demonstrate that it was not reasonably practicable for them to take any or all of their annual leave during the leave year in question, then they can carry forward unused leave which may be taken in the two leave years immediately following the leave year in respect of which it was due.

These new rules apply to the four weeks’ annual leave (20 days) provided for by regulations but not to the additional 1.6 weeks’ annual leave (8 days bank holidays). On this basis we will always be submitting claims to the Redundancy Payments Service for up to a maximum of four weeks carried over leave for directors and employees in circumstances which are consistent with these regulations.

In the absence of a written contract of employment, historically holiday pay claims have been made to the RPS using the holiday year 1 January to 31 December as the base line. The Working Time Regulations 1998 say:

(3) A worker’s leave year, for the purposes of the regulations, begins:

(a) on such date during the calendar year as may be provided for in a relevant agreement; or

(b) where there are no provisions of a relevant agreement which apply:

(i) if the worker’s employment began before 1st October 1998, on that date and each subsequent anniversary of that date; or

(ii) if the worker’s employment begins after 1st October 1998, on the date on which that employment begins and each subsequent anniversary of that date.

On this basis we will now calculate and submit claims for holiday pay accrual in conjunction with directors redundancy pay claims in accordance with these provisions and using these dates unless there is evidence to the contrary in a relevant written employment contract or statement of terms and conditions of employment.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can I claim for directors redundancy payments based solely on dividends?

You can still claim director redundancy if you were also on the company payroll as well as topping up your earnings with dividend payments. But in such a case your director redundancy claim and your other associated employment claims, would be based purely on the payroll element of your earnings and this would not include your dividend payments received.

There is nothing wrong with taking dividends from your company but if it’s done in isolation and you are not on the payroll, it means you don’t qualify for director redundancy pay. As part of their tax planning, company directors may elect to take only a low salary via the company payroll, and then top this up with dividends throughout the year. When you can prove that you have been paid regularly through the company’s payroll scheme, then you will be able to make a claim for director redundancy pay if your company enters into insolvent liquidation.

A word of warning now, however. If you continue to take dividend payments once the company becomes insolvent, then the liquidator may deem that such dividends to have been illegally taken and he could order you to repay them. So, if you fear that your company may soon be trading insolvently you should contact your accountant now and arrange for the dividends you have been drawing to be replaced by a salary paid through the company’s payroll. Whilst you will not achieve 2 years’ service this way (and miss out on a director redundancy claim) you will be entitled to claim for unpaid wages, holiday pay and notice pay if the company needs to be subsequently liquidated. And more importantly, you will not be exposed to the threat of action against you from the liquidator.

So, what requirements other than being on the payroll must be met to claim for director redundancy pay? You need to have:-

Worked under a formal contract of employment for a minimum of two continuous years
Worked for at least 16 hours per week
Not been a non-executive director acting simply in an advisory capacity
Actually been owed money by the company

If you are entitled to directors redundancy pay you may also be entitled to other payments, such as accrued holiday pay, unpaid wages and statutory notice pay. This can boost the overall redundancy package that you receive, and potentially help you pay for the liquidation process or acquire the company assets from the liquidator to help you to re-start the business.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can I claim for director redundancy payments if my company goes into Administration?

Yes, you can claim director redundancy from your own limited company, even if you were the sole director and the sole 100% shareholder and you put the company into administration yourself. If your company goes into liquidation following a period of administration, you can claim director redundancy pay and notice pay from the date of liquidation. However, your claims for unpaid wages and holiday pay will be based on the date of the administration.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can I claim for director redundancy payments if my company was in a CVA before liquidation?

If your company goes into liquidation following a Company Voluntary Arrangement, you can claim for director redundancy pay and notice pay from the date of liquidation. However, your claims for unpaid wages and holiday pay will be based on the date the company went into the CVA.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How are director redundancy payments worked out?

Director redundancy pay is based on your weekly earnings before tax which is the gross rate of pay. By law, eligible directors are entitled to claim half a week’s pay for each full year of service under 22 years of age; one week’s pay for each full year of service between 22 and 41 years of age; and one and a half week’s pay for each full year of service over 41years of age.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

When would a company director be unable to claim directors redundancy pay?

Not all company directors will have valid directors redundancy claims. The most common reason why not, is firstly because the directors were not actually on the company payroll, and secondly because there might have been a going concern sale of the business before the start of the liquidation.

Other factors which could invalidate a claim for a director redundancy claim include the claim not being made to RPS within 6 months of the directors redundancy occurring or the director’s employment with the company being for less than 2 years.

Looking at these reasons in a bit more detail. In order for a director to make a successful claim for director redundancy, they must be classed as an employee of the company as well as being a director. This means that the director must have been taking a regular wage or salary paid through the company payroll and via the PAYE system. If a director has not been paying themselves in this manner, or has instead been extracting money from the company solely through dividends or via their director’s loan account, then they will not qualify for director redundancy and the various other statutory entitlements which are only available to bona fide employees.

If the company’s business is sold before the actual date of the liquidation, and the directors and other employees are offered jobs by the purchaser of the business, then TUPE legislation will mean that there has been a transfer of undertakings to the purchaser and so an actual redundancy situation will not in fact have occurred. So effectively all employment contracts whether written, verbal or implied, will be inherited by the purchaser and there will have been a deemed continuation of employment. What this means is that in the future should the purchaser of the business be forced into liquidation, or bankruptcy, then the number of years’ service the directors and other company employees have accrued with the original company will be carried forward into the new business for the purpose of calculating redundancy entitlements.

Claims by directors for directors redundancy and also other employees claims must be made within 6 months of the date of their redundancy occurring. Often this is held to be the date that the company ceased trading, although on some occasions, it can be the actual date the company formally entered into liquidation. Redundancy claims and other associated employment claims cannot be submitted to Redundancy Payments Service (RPS) until the company is actually placed into liquidation, and the liquidator has received a Case Number (CN) reference for the company from RPS. So, in cases where trading ceased and redundancies occurred more than 6 months before the company officially enters into liquidation, future redundancy claims could be in jeopardy. However, so long as redundant employees had given the company (or the advising insolvency practitioner) written notice of their intention to claim redundancy and/or director redundancy within 6 months of it occurring, then they can still make a claim in the future. Other claims, such as the one for unpaid holiday pay, have to be brought within 12 months of redundancy, so this is often viewed as the long stop date for redundancy claims and the other associated employment claims being made and submitted to RPS as all claims have to be made at the same time on the same online claim form, known as an RP1 form.

To qualify for directors redundancy pay, directors who were also company employees, must have at least 2 years of continuous employment with the company. This means that the company must have been incorporated and trading for more than 2 years. In some cases, a limited company may be formed to take over the sole tradership business which the director had previously been running. However even though there is often a going concern transfer of the old business to the new limited company, the period for which the director was in business as a sole trader does not count as continuous employment for director redundancy purposes should the new limited company subsequently fail and enter into insolvent liquidation. And the reason being is that a sole trader cannot be an employee of their own business. The same would apply to a partnership business where the old partners form a limited company to take over their old business.

To be able to claim director redundancy, the company must be placed into insolvent liquidation. This is either a Creditors Voluntary Liquidation (CVL) or a Compulsory Liquidation (CMP). Both types of insolvent liquidation result in the remaining assets of the assets being realised and the proceeds used to pay for the costs of the liquidation and then if there is anything remaining, to pay a dividend to the company’s creditors. After this has been done, the company can be formally dissolved and removed from the Companies House register at which point the company ceases to exist. In certain circumstances a company can be dissolved without first being put into liquidation. However, to qualify for dissolution, the company must have no creditors, ie it must be solvent. For many, the benefit of dissolving a company over liquidating it, comes down to cost. While a CVL typically costs around £4,000, dissolving a company can be achieved for just £10. However, not only does the dissolution route not adequately deal with any outstanding company creditors, it also makes you ineligible for a director redundancy claim. With the average claim for director redundancy coming in at over £12,000, you could well find yourself much better off financially by liquidating your business even accounting for the cost of the CVL. If you are considering closing your insolvent company, it makes sense to first get an idea of the amount of director redundancy you may be able to claim by liquidating it before you make a final decision on how to proceed.

From the above, it follows on that the company must be insolvent for the directors to qualify for directors redundancy pay. Because redundancy is designed to compensate an individual in the event that their job role no longer exists, only directors of insolvent companies are eligible to claim directors redundancy. Should a director decide to close their solvent company this is viewed as a resignation rather than a directors redundancy. However, it should be remembered that the onus for making redundancy payments to staff lies with the company. Therefore, it is not unheard of for the potential cost of making redundancies to tip a company over from a state of solvency into a position where the directors could find themselves trading whilst insolvent.

If you would like to find out more about director redundancy claims and whether you would be eligible to claim please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 We can quickly determine whether you meet the criteria, and if you do, we can take you through the entire claims process from start to finish.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Am I eligible to make a directors redundancy claim?

You will be eligible to make a directors redundancy claim so long as you were on the payroll and paid regular wages or a salary by the company. The answer is also yes, of course you can, if you were the only director of the limited company and still yes, you can, even if you were the sole 100% shareholder in the company.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a director of limited companies make themselves redundant?

Even the sole director of a limited company can make themselves redundant so long as they were on the company payroll and therefore could be classed as an employee. The selection and dismissal process applied must be the same one that would be followed for any other employee being made redundant by the company.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

When can a directors redundancy claim be made?

We can help you to submit a claim as soon as your company goes into liquidation or administration. And don’t worry, we can prepare your redundancy claim from start to finish and help you at all stages.

Your director redundancy claim needs to be submitted to the Redundancy Payments Service within 6 months of the redundancy occurring. In some circumstances this can be extended to 12 months.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

What is the maximum director redundancy claim available at the moment?

Currently, the maximum amount of a director’s total claim is £29,006.

This is made up of the following separate claims.

Redundancy pay – 30 week’s pay always tax free.

Unpaid wages – 8 week’s pay, subject to tax at 20% if you are aged over 65.

Holiday pay – 6 week’s pay, subject to tax at 20% if you are aged over 65.

Notice pay – 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

What happens to any benefits I receive and other income during my notice period?

If you claim benefits or start a new job after being made redundant you will still be able to claim for director redundancy pay. However, your claim for statutory notice pay will be reduced by the amount of your benefits and/or new earnings during your notice period which is one week’s pay for each year of service up to a maximum of 12 weeks.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can company directors be made redundant from their own company?

Directors, just like members of staff, can be made redundant provided that they were on the company payroll and therefore were bona fidei employees themselves. The selection and dismissal process applied to director redundancy must be the same as the one followed by the company when making any other employee redundant.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Do I need an employment contract with my own limited company?

There is no legal requirement for a director to have a contract of employment with his/her own limited company. It is useful however if you have a summary of the main terms of your employment. This will make it easier for you to claim director redundancy in the event of company liquidation. We can help you to prepare a summary of the terms and conditions of your employment with the company in the event that you are considering making a director redundancy claim.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How can I claim director redundancy if I cannot afford to pay for a liquidation?

On occasions the liquidator may agree to wait to be paid their fees from your own director redundancy claim. This means that the liquidation can be started straight away without you having to pay the fees upfront. Your directors redundancy claim can be submitted as soon as the company goes into liquidation.

In such a situation, you need to know that your director redundancy claim is correctly paid out and is for the maximum entitlements available to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How much will my director redundancy claim be?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Currently, the maximum amount of a director’s total claim is £27,635.

This is made up of the following separate claims.

Directors Redundancy Pay – a maximum of 30 week’s pay, always tax free.

Directors Unpaid Wages – up to 8 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Holiday Pay – up to 6 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Notice Pay – a maximum of 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working in a new job.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can directors claim for holiday pay they are owed?

We can help directors to submit a claim as soon as their company goes into liquidation or administration. We can deal with all parts of your claim from beginning to end, so don’t worry.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can all directors claim for directors redundancy pay?

Company directors can claim for directors redundancy pay, and other benefits, in the event of company liquidation or administration just as long as they are on the payroll along with the other employees. Some directors are not aware of this fact and so we are here to help all directors to maximise their directors redundancy claims and other employment claims for statutory entitlements. On some occasions, directors can use their redundancy claim to pay the liquidator’s costs or to buy back company assets so they can re-start the business and secure their future.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

For more information, please call us on 0161 533 0232 or email [email protected]

How can a director make a claim for unpaid wages?

As soon as a liquidator is appointed, we will help you to claim your maximum entitlement for directors unpaid wages. You can claim for up to 8 week’s unpaid wages. These can be the 8 weeks where you would have earned the most money.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can every director get directors redundancy pay?

Company directors can claim for directors redundancy pay, unpaid wages, holiday pay and notice pay in the event that their limited company enters into insolvency provided that they were paid a regular wage or salary through the company payroll. Many years ago this was a little known fact. It was widely believed that company directors were unable to claim directors redundancy pay and other statutory entitlements from the Redundancy Payments Service (RPS) because it was usually their actions or inactions which had led to the company’s insolvency and the resultant liquidation. It was also a no go where the company director was also a 100% shareholder and hence owner of the company.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can directors be made redundant even when they were on furlough?

Company directors and other employees could be made redundant whilst on the UK government’s furlough scheme and were therefore entitled to claim director redundancy pay in the event that their company was forced into liquidation.

If you were in this position then please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your claim.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How long does the company director redundancy claims process take?

RPS aims to process directors redundancy claims within 6 weeks from the date of receipt of your directors redundancy claim by them. So, the sooner we submit your directors redundancy claim to RPS, the quicker the money will be in your bank account. Generally speaking, the whole directors redundancy process takes around 6 to 8 weeks. So, if you instruct CFS Redundancy Payments Ltd today by calling us on 0161 533 0232, your director redundancy claim could be settled sooner than you think. We will deal with your entire director redundancy claim from start to finish. Based on information you give us, we will submit your RP1 form which details your claims for Redundancy pay, Unpaid wages and Holiday pay. Once the first part of your director redundancy claim has been processed for payment by RPS we will then submit your Notice pay claim. Usually, all 4 parts of your claim are processed and paid out by RPS within 8 weeks following the submission of your RP1 form.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a company director claim for notice pay?

We will prepare your notice pay claim at the end of your statutory notice period, which is one week’s pay for every year of service up to a maximum of 12 weeks. As it is a statutory entitlement it does not matter what it may say about the length of your notice period in your employment contract, if you have one.

We will complete a second online application to get this money for you. We can only complete this second application after the time your notice period has ended. By this stage you should have already received your director redundancy payment, your unpaid wages and your holiday pay.

You don’t have to worry about keeping track of when your notice period ends. We will do this for you and then contact you when the application can be made.

Everyone’s notice period is different, dependent on their length of service so don’t worry if we contact some of the former directors before we contact you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can directors claim directors redundancy pay even if the company went into liquidation more than 6 months ago?

Yes, they can so long as they notified the company as their employer, or the liquidator, of their intention to claim director redundancy at any time during that 6 month period. Quite often directors are able to find an email or note they sent to one of their co directors or the company accountant or the liquidator, stating that they plan on claiming director redundancy pay at the appropriate juncture once the liquidation process has started.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can directors carry forward unused holiday?

Company directors are usually able to carry forward unused holidays if their employment contracts with the company allow them to do so. However, many company directors do not have formal written contracts of employment and so we need to tell you what is likely to happen in such situations.

The Working Time Regulations 1998 provides that the statutory basic annual leave entitlement of four weeks may only be taken in the leave year to which it relates. Employers and their employees can agree to carry over any additional statutory leave into the next leave year only by means of a relevant agreement. However, as many directors do not have a contract of employment, directors have rarely been able to carry over any statutory leave.

However, in certain circumstances we can help directors to justify their entitlement to carry forward unused holidays into the following year and on occasions into the holiday year after that. It should be noted that the maximum holiday pay claim allowed by Redundancy Payments Service is for 6 weeks pay, restricted to the statutory maximum of £544 per week.

If the employee/director can demonstrate that it was not reasonably practicable for them to take any or all of their annual leave during the leave year, they can carry forward unused leave which may be taken in the two leave years immediately following the leave year in respect of which it was due.

These new rules apply to the four weeks’ annual leave (20 days) provided for by regulations but not to the additional 1.6 weeks’ annual leave (8 days bank holidays). On this basis we will be submitting claims to the Redundancy Payments Service for up to a maximum of four weeks carried over leave for directors and employees in circumstances which are consistent with these regulations.

(3) A worker’s leave year, for the purposes of the regulations, begins:

(a) on such date during the calendar year as may be provided for in a relevant agreement; or

(b) where there are no provisions of a relevant agreement which apply:

(i) if the worker’s employment began before 1st October 1998, on that date and each subsequent anniversary of that date; or

(ii) if the worker’s employment begins after 1st October 1998, on the date on which that employment begins and each subsequent anniversary of that date.

On this basis we will now calculate and submit holiday pay accrual in accordance with these provisions and using these dates unless there is evidence to the contrary in a relevant written employment contract or statement of terms and conditions of employment.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can I claim for directors redundancy pay based on dividends paid to me as a shareholder?

There is nothing wrong with taking dividends from your company but if it’s done in isolation and you are not on the payroll, it means you don’t qualify for director redundancy pay. As part of their tax planning, company directors may elect to take only a low salary via the company payroll, and then top this up with dividends throughout the year. When you can prove that you have been paid regularly through the company’s payroll scheme, you will be able to make a claim for director redundancy pay if your company enters into insolvent liquidation.

So, what requirements other than being on the payroll must be met to claim for director redundancy pay? You need to:

Work under a formal contract of employment for a minimum of two continuous years
Work for at least 16 hours per week
Not be a non-executive director acting simply in an advisory capacity
Be owed money by the company

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a director ever be made bankrupt for business debts?

A director cannot be made personally bankrupt for the business debts of a limited company. This is the whole point of a company having “limited liability”. The position is different if the director has personally guaranteed any business debts. But you will be relieved to know that a director can use their director redundancy payment to settle any personal guarantees given. This is an additional service that CFS Redundancy Payments offer. Initially, we will look into the enforceability or otherwise of the personal guarantee, in conjunction with our legal advisors. You will be relieved to know that many PG’s turn out to be invalid and therefore unenforceable by the creditor against the director. On those rare occasions where the PG proves to be valid, we can look to negotiate a settlement deal with the creditor on your behalf. And as mentioned above, you can use your director redundancy claim as part of the settlement offer.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a company director who was paid less than minimum wage apply for a directors redundancy claim?

As a result of a policy decision taken by the Redundancy Payments Service (RPS) on 30 September 2022, the redundancy claims of directors who were paid at less than National Minimum Wage will no longer be approved. Consequently, we are finding that all submitted claims are being rejected by RPS where the director was paid at less than NMW.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

What if my company is insolvent but I cannot afford to pay an insolvency practitioner?

It is unavoidable that company liquidation comes with a cost attached to it. As part of the liquidation procedure, a company’s assets will be sold, or ‘liquidated’, by the appointed insolvency practitioner in order to raise as much money as possible from which to settle the company’s liabilities. Ordinarily liquidation costs are funded as part of this process, with the insolvency practitioner ring-fencing a portion of the money raised to cover their own fees before distributing the remainder amongst the outstanding creditors within the liquidation.

Should this not be possible due to the company having insufficient assets, the director would be expected to pay these fees from their own personal resources. In some cases, however, this simply may not be possible. Unfortunately, if a company is insolvent it goes without saying that there is often very little surplus money going spare, both in the business, and also for the director personally.

If your company has insufficient assets and your personal finances cannot stretch to funding the cost of the liquidation, there may be another way of raising the money.

It is not widely known that company directors are entitled to make a claim for directors redundancy should their company become insolvent and consequently enter liquidation. However, should you qualify, director redundancy pay can be used to pay for the closure of your insolvent company.

As well as claiming for director redundancy you may also be entitled to receive additional compensation for unpaid holidays, notice pay, and unpaid wages.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Do I need a contract of employment with my own company?

A contract of employment does not have to be written; it can also be verbal or implied. The existence of an employment contract help you to confirm your status as an employee and it will give clear evidence of your start date, hours worked and holiday entitlement amongst other things.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Am I liable for the debts of a limited company?

Once a limited company gets to the stage where it is struggling to keep up with its liabilities as and when they fall due, options need to be considered to protect the business and its creditors from incurring further losses. If your limited company has a significant amount of debt, you may be wondering who is liable for paying this back should the business is unable to do so. Limited liability is one of the main benefits of trading as a limited company. Limited liability offers the company director a layer of protection against their company’s debts. In the eyes of the law, a limited company is seen as a complete separate entity from its directors. When it comes to a company experiencing financial issues, limited liability really comes into play. Any debts accrued by the limited company, in the company’s name, belong entirely to the company. Therefore, should an insolvent business cease trading and enter liquidation unable to fully satisfy its outstanding creditors, the debts will die with the company.

If you as a company director are also an employee of the limited company, then you may be entitled to claim for director redundancy pay.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Or email us for more information at [email protected]

Who can you help me with my Personal Guarantees after the liquidation?

The exception to the rule that the debts will die with the company is if any debts were personally guaranteed by you as a director. A personal guarantee (PG) is when the borrower makes an agreement with the lender that should the business be unable to pay back the money it owes, responsibility will then switch to the individual director who will be required to take over the debt and pay it back from their own personal funds.

PGs are often requested on property leases, company credit cards, and large loans particularly those offered to newly incorporated businesses. If you are in any doubt as to whether you have personally guaranteed company debts you should make it a priority to check through the original paperwork and find this out. If your company is struggling financially and you have personally guaranteed a significant portion of the debts, your options may well be different to those available to you if no personal guarantees had been signed.

If you as a company director are also an employee of the limited company, then you may be entitled to claim for director redundancy pay.

Please click on this link to access our free to use director redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Phone CFS Redundancy Payments today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are answered 24/7 in the UK.

Or email us for more information at info@cfsredundancypayments

How do I pay off Personal Guarantees?

Many PG’s given by company directors turn out to be invalid and therefore unenforceable against them by the relevant creditors. Our legal team will be happy to review any documentation you can get your hands on and let you know if the PG’s are valid or not. Where they turn out to be valid then, if you would like, we can help to negotiate favourable settlements terms with the creditor in question. This can be either a discounted lump sum payment or a series of deferred payments over an extended period of time. In certain circumstances, we may be able to use your directors redundancy payment from RPS to settle the whole of the debt owed.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Phone CFS Redundancy Payments today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are answered 24/7 in the UK.

How do I make my claim for director redundancy pay and other benefits?

The average director redundancy claim is for around £12,000, which can prove to be a real lifeline when your insolvent company has just been liquidated. Director Redundancy Claims must be made through the Redundancy Payments Service, which is part of the Insolvency Service. If the claim is successful, it will then be paid by the National Insurance Fund.

Claims for director redundancy and other statutory payments should usually be made to RPS within six months of the liquidation, although this can be extended to 12 months in certain circumstances.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Or email us for more information at [email protected]

Can directors be made redundant themselves?

A director can be made redundant so long as they were on the company payroll just like the workers and staff were.

The selection and dismissal process applied must be the same one that would be followed if any other position was being made redundant.

When a business becomes insolvent and gets liquidated, the company’s employees are automatically made redundant. The appointment of a liquidator in itself terminates all contracts that the company had, including contracts of employment whether they were written, verbal or implied contracts. The company employees become eligible for statutory redundancy and other payments provided they meet certain conditions. The qualifying criteria for employee redundancy also apply to company directors, as long as they can prove their status as employees of the company.

If they fulfil the same criteria as the employees, and have worked under a similar arrangement and were receiving wages or a salary through the PAYE system rather than being paid solely via dividends, it is likely that they will qualify for director redundancy pay and other statutory entitlements such as unpaid wages, outstanding holiday pay and notice pay.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

What entitlements can be included in a director redundancy claim?

Directors can claim for director redundancy pay, unpaid wages, holiday pay and notice pay, in the event that their limited company enters into insolvency. Your entitlement to director redundancy pay depends on a number of factors. These comprise of the following. How long you have you been employed for; your age at the time of redundancy; your current salary, which presently is capped at £571 per week.

This is how your director redundancy entitlement is calculated. If you were aged less than 22 when your employment started, you get half a week’s pay for each year of service up to age 22. Then from age 22 to age 40, you get one week’s pay for each year of service. Then you get a week and a half’s pay for each year of service after age 40. This calculation is subject to a maximum qualifying number of years service of 20 years. So, if your employment with the company started at age 42 and lasted until age 66, this would be 24 years’ service but it would be limited to a statutory maximum of 20 years and would equate to 30 week’s pay, at a maximum of £571 a week, which in monetary terms would mean a maximum possible pay out of £16,320. Director redundancy pay is always tax free.

Unpaid wages are restricted to a maximum claim of 8 week’s pay restricted to £571 per week, which would be £4,352 gross. Unpaid wages are paid by RPS after deduction of basis rate tax and national insurance of 28%. There is no restriction on how far back your claim for unpaid wages can be carried. So, for instance if cash flow problems within the company resulted in you being unpaid for 6 months 3 years ago, then you could still claim for 8 weeks within this 6-month period. And you can choose the best 8 weeks to suit you in case your rate of pay fluctuated, so you can effectively select the 8 weeks where you should have been paid the most wages.

Your claim for holiday pay is restricted to a maximum of 6 week’s pay for holidays not taken within the 12-month period immediately preceding the date of your redundancy. Again, this is restricted to a maximum of £571 per week, which would result in a gross pay out of £3,264. This would be subject to deduction of tax & national insurance at 28%. It is worth noting that your unused holidays can be carried forward to the following year so long as this is provided for in your contract of employment or terms & conditions of employment with the company.

Notice pay is calculated by RPS at one week’s pay for each year of service up to a maximum of 12 week’s pay. It is irrelevant how much notice your contact of employment afforded you, be it either one month or six months, your actual entitlement is always calculated as one week’s pay for each year of service restricted to 12 weeks maximum pay, which would be a gross claim of £6,528. You need to declare to RPS details of any earnings during your notice period if you started a new job, or alternatively any state benefits you claimed in this period.

It is worth noting that if you were entitled to receive benefits but did not claim them for whatever reason, then RPS will deduct these notional benefits from the value of your claim. After deduction of new earnings and/or actual/notional benefits your net claim for notice pay will be taxed at 28%.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can directors claim for director redundancy pat if they were paid at less than national minimum wage (NMW)?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can a company director claim for director redundancy pay in a compulsory liquidation?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can every director claim for director redundancy payments?

Are there any requirements other than being on the payroll must be met to claim for director redundancy, you may ask? You need to have:

Worked under a formal contract of employment for a minimum of two continuous years
Worked for at least 16 hours per week
Not been a non-executive director acting simply in an advisory capacity
Be actually owed money by the company

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can a director claim for director redundancy if they don’t have a contract of employment?

There is no legal requirement for a company director to have a written employment contract with their own limited company. And so even without a contract of employment they can still claim for director redundancy and the other statutory entitlements in the event of company liquidation. Employment contracts can be written, verbal or implied. They are all legally binding. It is however very useful if there is an employment contract available or at least a summary of the main terms of your employment. Based on the terms and conditions of your employment by the company, we can help you to prepare a summary document containing the main terms of your employment.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Will starting another job affect my claim for director redundancy pay?

If you begin a new job after being made redundant a director will still be able to claim for director redundancy pay. The fact that an employed director has accepted an offer of employment to begin on a later date, or is intending to leave anyway, will not stop him being entitled to a director redundancy payment so long as they are made redundant whilst still employed by the company and will not stop them from being entitled to make a claim to the RPS if the company does not pay them a director redundancy payment or other money it owes them.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

How long after the liquidation process can I make a claim for director redundancy pay?

You need to start your claim for director redundancy pay within 6 months of being made redundant. If you were employed right up to the liquidation date then you have to start your claim within 6 months following on from this date. You can begin the claim process simply by notifying the liquidator in writing of your intention to claim director redundancy at any time within this six month period. If you have done this already, then you don’t have to physically submit the claim until a later date. But it is always best to submit the claim within 12 months of your redundancy otherwise some of the statutory entitlements may be lost. Having said all of this, it is usual for a company to cease trading several months before the liquidation date and it is often the date that trading ceased that is viewed by the Redundancy Payments Service as the date of director redundancy.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can a director claim director redundancy from their own company?

Simply put YES you can, so long as you were on the payroll and paid regular wages or a salary by the company. The answer is also yes, you can, if you were the only director of the limited company and still yes you can, even if you were the sole shareholder in the company. Many directors whose companies are facing financial difficulties are unaware of this.

Every director can claim for director redundancy pay, unpaid wages, holiday pay and statutory notice pay, in the event that their own limited company enters into liquidation provided that they were on the company payroll just like any of the staff they may have employed.

As well as being on the payroll you also must:

Work at least 16 hours a week
Work for at least two years under a formal contract of employment
Not be a non-executive director acting only in an advisory capacity
Be owed money by the company

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Is every company director able to claim for redundancy pay?

Every company director can claim for director redundancy pay and other statutory entitlements in the event that their limited company enters into insolvency provided that they were bona fide company employees.

Until recently the availability of director redundancy was a little known fact. It was widely believed that company directors were unable to claim for director redundancy pay and other statutory entitlements from the Redundancy Payments Service (RPS) because it was usually their actions or inactions which had led to the company’s insolvency and the resultant liquidation. It was also thought to be a no go where the director was also a shareholder and hence owner of the company.

CFS Redundancy Payments Ltd is here to help all company directors to maximise their redundancy claims and other employment claims for statutory benefits. In some circumstances, directors can use their redundancy monies to pay the liquidation costs or to re-start the business with assets they are now able to buy back from the liquidator.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

How can a company director claim for director redundancy pay?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Who can advise me with on my personal guarantees?

Call us at any time on 0161 533 0232 and let us help you with your personal guarantee. Your call will be answered from 8am until 8pm.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can I use my director redundancy claim to pay my personal guarantees?

You can use your director redundancy payment to settle any personal guarantees you may have given. Quite often, following company liquidation, directors will have little resources left from which to pay PG’s and many find it a really helpful to be able to use their director redundancy payment to do this. We can help you to negotiate a favourable settlement deal with any of your PG creditors.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

How does a director claim for director redundancy pay?

Currently, the maximum amount of a director’s total claim is £29,006. This is made up of the following separate claims for a director aged over 66 with more than 20 years’ service, an annual salary of more than £35,360 and no new job in their notice period. So the overall total maximum claim comprises; 30 weeks Redundancy pay; 8 weeks unpaid wages; 6 weeks holiday pay and 12 weeks notice pay.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can all company directors claim for director redundancy pay?

All directors can claim for director redundancy pay, unpaid wages, holiday pay and notice pay in the event that their limited company enters into insolvency, so long as they were on the company payroll alongside any of the staff they may have employed. They must also have more than 2 years continuous service, work more than 16 hours a week in an executive/decision making position and be owed money by the company.

So yes, basically every director can claim for director redundancy pay, unpaid wages, holiday pay and notice pay, in the event that their limited company enters into insolvency provided that they were on the company payroll.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can a director claim for redundancy pay without being on the payroll?

As well as being on the payroll the director must also:

Work at least 16 hours a week
Have been employed for more than 2 years
Be an executive director with an active role in the company’s affairs
Be owed money by the company

If you are entitled to director redundancy pay then you may also be entitled to receive other payments, such as outstanding holiday pay, unpaid wages and statutory notice pay. This can boost the overall redundancy package that you receive, and potentially help you pay for the formal liquidation process or buy the company assets back from the liquidator to help you to re-start the business.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

What is the process for claiming director redundancy pay?

Directors redundancy claims will be completed by us and processed by the Redundancy Payments Service in two stages. The first stage will be the submission and processing of your claims for redundancy pay, unpaid wages and holiday pay. Typically, it will take us between 6 and 8 weeks to secure the payment of these elements of your claim by RPS. The second stage will be the completion and processing of your notice pay claim, which will take a further week to be paid out by RPS.

This is our own bespoke directors’ redundancy payments process.

Receive and validate enquiry from a director
Establish eligibility for claim
If eligible for claim request full information from director
Ask additional questions where director has new job
Once all questions answered send the pre-contractual information document
Statement of all information received to be prepared as basis of claim
Director claim documents created and sent for signing and return
Request and receive the case number reference from Liquidator
Submit RP1 claim form online and send signed mandate letter to RPS
Further questions sent to Director to answer any queries from RPS
At end of notice period final questions will be answered and RP2 claim form submitted
Payment of claim to director

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can I claim director redundancy pay from my own company?

Yes, you can claim director redundancy pay from your own limited company so long as you were on the payroll and paid regular wages or a salary by the company. You can also claim director redundancy pay if you were the only director of the limited company and also even if you were the sole shareholder in the company.

Although sometimes quite a complicated process, directors who can prove their status as employees of their company can be eligible to make a claim for director redundancy pay from the National Insurance Fund (NIF). This is a Government fund run and administered by the Redundancy Payments Service (RPS) which is part of the Insolvency Service.

Directors will be able to claim director redundancy pay as long as the company has been trading for at least two years, and they have held continuous employment during this time.

Various factors are taken into consideration when determining eligibility for director redundancy pay, including:

Taking a salary under PAYE, as well as receiving dividend payments
Having an active management role in the company
Working more than 16 hours per week
Being owed money by the company; whether that is the original investment in the company or arrears of salary/holiday pay, for example

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

How does a director claim director redundancy?

CFS Redundancy Payments Ltd is a regulated claims management company authorised by the Financial Conduct Authority to help and advise with director redundancy claims following on from company liquidation. Only an FCA regulated claims management company can process directors redundancy claims. We will always make sure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is authorised and regulated by the Financial Conduct Authority to process redundancy claims arising from company liquidations. Please contact us today on 0161 533 0232 or email [email protected]

Does a director need a contract of employment with his/her own limited company?

Please don’t worry if you don’t have a proper contract of employment with the company. We can help to prepare a summary of the main terms and condition of your employment in a form that will be acceptable to Redundancy Payments Service.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Who can help me with director redundancy?

Anyone who is acting for or advising an individual on any employment related claim, and charging for doing so, must be regulated by the Financial Conduct Authority. This is because they are holding themselves out as a claims management company by acting as an intermediary between the employee and their former employer who will be represented by the liquidator. This covers independent HR consultants, most of which are not FCA authorised but should be.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Do I need a contract of employment to be able to claim director redundancy?

There is no legal requirement at all for a director of a limited company to have a written employment contract with the company even when the director is the sole shareholder and therefore the 100% owner of the company. And so even without a contract of employment the director can still claim for director redundancy and all of the other statutory entitlements in the event of company liquidation. Employment contracts can be written, verbal or implied. They are all legally binding just the same. It is however very useful if there is an employment contract available or at least a summary of the main terms of your employment. Based on the terms and conditions of your employment by the company, we can help you to draft a summary document containing the main terms of your employment which will be acceptable to Redundancy Payments Service when processing your claim for director redundancy.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Who pays directors redundancy claims?

Directors who can prove their status as employees of their company are eligible to make a claim for director redundancy and other associated employment claims from the National Insurance Fund (NIF). This is a Government fund run and administered by the Redundancy Payments Service (RPS) https://www.gov.uk/redundancy-payments-helpline which is part of the Insolvency Service https://www.gov.uk/government/organisations/insolvency-service

When RPS has paid out a directors redundancy claim it will submit a claim for this amount to the liquidator. Their claim will rank alongside the claims of the other creditors in the liquidation. It does not affect the director at all if there are no funds in the liquidation to pay a dividend to the creditors. The claim will have already been paid out and the debt due to NIF will just get written off.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can I claim for director redundancy pay if I was paid less than national minimum wage?

The simple answer is yes, you can. However, unlike in the past, directors redundancy claims will no longer be automatically be uplifted to national minimum wage (NMW) unless the Insolvency Practitioner (IP) agrees the uplift.

Here at CFS Redundancy Payments Ltd, we shall continue to process directors redundancy claims at never less than national minimum wage, on the RP1 form which we submit online to RPS.

The online RP14A form contains the following employee information:-

Employee name

CHAMP case reference number (CN)

Employee full name

Date of birth

NI number

NI class

Employment start date

Date notice given

Employment end date

Basic weekly pay

Day of week paid

Owed wages from date(s)

Owed wages to date(s)

Amount(s) of owed wages

Holiday year start date

Number of days holidays owed

Weekly pay (52 week reference period – see notes below for full explanation)

So, where the IP indicates that the Basic weekly pay was the national minimum wage (which for 2022/2023 is £380.00 for a 40 hour week), then the directors redundancy claim, and other associated employment claims, will all be processed by RPS at NMW rate of pay.

RPS will process the claims based on Basic weekly rate on the RP14A on the assumption that the IP has factored in the claimant’s hours worked per week when assessing the Basic weekly rate based on the evidence available to them. If the rate is below NMW then RPS will advise the claimant and the IP and it will be down to the IP to consider agreeing the uplift. So the uplift to NMW will no longer be automatic.

From our discussions with RPS, we understand that they are hoping to be able to amend the information required on the RP14A, to include the number of hours worked per week by the claimant. However this may take RPS several months to implement unfortunately.

In addition to the RP14A, the IP must complete an RP14 form which is information on the insolvent company itself and must include the following information:-

Company name

CHAMP case reference number (CN)

Company number

Date of incorporation

Company address

Company PAYE reference

Company directors’ details

Company shareholders details

Details of any associated companies

Did the above take on any employees from the insolvent company?

Number of employees made redundant by the insolvent company

Are any of the above claiming TUPE from a previous business?

Details of any previous business mentioned above

Should TUPE claims be accepted?

Were employees entitled to carry forward unused holidays?

Date of company insolvency

Has there been a transfer of the business?

Details of whom business was transferred to

Date of business transfer

Date the negotiations began

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Will a director claiming directors redundancy pay have a bad effect on the liquidation?

If you have a valid claim for director redundancy pay then this can be submitted to the Redundancy Payments Services and processed for payment along with the other employee claims. When the claims are paid out by RPS, they will lodge a claim in the company liquidation for the amount of all payments made to former employees and rank alongside the other creditors for the sum owed. If there are no funds in the liquidation to pay a dividend to the creditors then this will have no impact on your claim or on the liquidation process because your claim will have already been paid out.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can I claim director’s redundancy if my company is in Administration?

Yes, you can claim redundancy from your own limited company, even if you were the sole director and the sole 100% shareholder, and you have put your company into administration yourself. If your company does go into liquidation following a period of time in administration, you can claim both redundancy and notice pay from the date of the liquidation.

However, your claims for any unpaid wages and holiday pay will be based on the date of the administration.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

Can I claim director redundancy pay if my company was in a CVA before liquidation?

If your company goes into liquidation following a Company Voluntary Arrangement (CVA), you are able to claim both redundancy and notice pay from the date of the liquidation. However, your claims for any unpaid wages and holiday pay will from the date the company entered into the CVA.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 08:00 until 20:00 in the UK. All calls are free including mobiles.

What would prevent a directors redundancy claim for director redundancy pay getting approved?

There are a few reasons why a directors redundancy claim for a directors redundancy payment may get refused. The most common ones are, the director was not actually on the payroll and was only paid via dividends; the company trading for 2 years or less before it went into liquidation; or their employment has been transferred, using TUPE regulations, to the new company which bought the assets and business from the old company.

Other reasons as to why a director redundancy claim for a directors redundancy payment not be valid, include the director redundancy claim not being made to RPS within the first 6 months of the redundancy occurring, or the company not entering into insolvent liquidation.

Looking more in depth at these reasons. For a director to make a successful director redundancy claim for directors redundancy pay, they need to have been classed as an employee of the company, as well as being the director. This means that the director must have been taking a regular wage or salary that was paid through the company payroll and through the PAYE system. If the director has not been paying themselves through this system, or has instead been withdrawing money from the company solely through dividends or via their directors loan account, they will not have a valid claim for directors redundancy pay and the other statutory entitlements, which are only available to genuine employees.

To qualify for directors redundancy pay, directors who were also company employees, meaning paid through the company payroll and PAYE system, need to have a minimum of 2 years continuous employment with the company. This means the company must have been incorporated and trading for more than 2 years. In some cases, a limited company may be formed to take over the sole tradership business which the director had previously been running. However, even though there is often a going concern transfer of the old business to the new limited company, the amount of time for which the director was in business as a sole trader will not count as continuous employment for redundancy purposes, should the new limited company subsequently fail and enter into insolvent liquidation. The reason for this is that a sole trader cannot be an employee of their own business. This would also apply to a partnership business where the old partners form a limited company to take over their old business.

If the company’s business is sold prior to the date of the liquidation, and both the directors and employees are offered jobs by the buyers of the business, then TUPE legislation will mean that there has been a transfer of undertakings to the purchaser and so an actual redundancy situation will not have occurred. Therefore, all employment contracts whether written, verbal or implied, will automatically transfer to the purchaser and there will have been a deemed continuation of employment. This will mean that if the new is forced into liquidation in the future then the number of years employment for the directors and other employees which have in fact accrued with the original company, and will be carried forward into the new business for calculating redundancy payments.

Both directors and other employees must make claims within 6 months from the date of redundancy occurring. This often will be the date that the company ceased trading, although occasionally, it can be the date the company formally entered liquidation. Redundancy and any other associated employment claims cannot be submitted to Redundancy Payment Service (RPS) until the company is actually placed into liquidation, and the liquidator has received a Case Number (CN) reference for the company from RPS. So, in cases where trading ceased and redundancies occurred more than 6 months before the company officially goes into liquidation, future redundancy claims could be in jeopardy. However, so long as employees who have been made redundant give the company (or the advising accountant or insolvency practitioner) written notice of their intention to claim redundancy within the 6 months of it occurring, then they will be able to make a claim in the future. Other claims, for example, unpaid holiday pay, have to be brought within 12 months of the date of redundancy, so this is often viewed as the long stop date for directors redundancy claims and the other associated employment claims being made and submitted to RPS as all claims have to be made at the same time on the same online claim form, known as the RP1 form.

For you to be able to claim director redundancy pay, the company must be placed into insolvent liquidation. This is either a Creditors Voluntary Liquidation (CVL) or a Compulsory Liquidation (CMP). Both of these types of insolvent liquidation mean that the remaining assets of the business will be sold by the liquidator and the proceeds used to pay for the costs of liquidation, and if anything is remaining, to pay a dividend to the creditors. Once this has been done, the company can be formally dissolved and removed from the Companies House register at which point the company will cease to exist. In some circumstances a company can be dissolved without first being liquidated. However, to qualify for dissolution, the company must have no creditors at all, i.e. it must be solvent. For many directors, the benefit of dissolving a company over liquidating it, will come down to cost. While a CVL could cost around £5,000, dissolving a company could be as little as £10. However, not only does a dissolution not adequately deal with any outstanding company creditors, it will also make you ineligible for directors redundancy pay. With an average claim for director redundancy coming in at around £9,000, you could find yourself in a much better position financially by liquidating your business, even accounting for the cost of the CVL. If you are considering closing your insolvent company, it makes good sense to get an idea of the amount of directors redundancy pay you may be able to claim before liquidating it before you make a final decision on how to proceed.

From the above, it follows on that the company must be insolvent for both the directors and employees to qualify for redundancy pay. Due to redundancy being designed to compensate an individual in the event that their job role no longer exists, only directors of insolvent companies are eligible to claim. Should a director decide to close a solvent company this is viewed as resignation rather than directors redundancy. However, it should be remembered that the onus for making redundancy payments to staff lies with the company. Therefore, it is not unheard of for the potential cost that comes with making redundancies to tip a company over from a state of solvency into a position where the directors could possibly find themselves trading whilst insolvent.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How are director redundancy payments worked out?

Director redundancy payments are based on your gross weekly earnings before tax. By law, directors who are eligible are entitled to claim half a week’s pay for each full year of employment under 22 years of age; one week’s pay for each year ctor redundancy payments worked out?of employment between the ages of 22 and 41 years; and one and a half week’s wage for each year of employment for over 41 years of age.

CFS Redundancy Payments Ltd is a claims management company (CMC) authorised and regulated by the Financial Conduct Authority to assist with director redundancy claims arising from company liquidations. Only a CMC with FCA regulation can process directors’ redundancy claims. We will use our vast experience to ensure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be worth. Currently, the maximum amount of a director’s total claim is £29,006.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

What is the Transfer of Undertakings Protection of Employment Act?

The Transfer of Undertakings (Protection of Employment) Regulations 2014 (TUPE) protects employees’ terms and conditions when a business is transferred from one owner to another. This could occur to an insolvent company if the insolvency practitioner sells the whole of the business or certain assets of the business to a purchaser. Employees of the insolvent company become employees of the new owner on the same set terms and conditions.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be worth. Currently, the maximum amount of a director’s total claim is £29,006.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can a company director who was paid less than minimum wage claim director redundancy pay?

If a director has been taking a regular salary through the PAYE system, regardless of the amount, they will typically be entitled to claim director redundancy pay. When a company is going through financial hardships, more often than not, the directors of the company will do everything within their power to enhance the business’ fortunes. This will be achieved by implementing cost cutting measures, wherever possible. Typically, the first areas to be cut is often the salaries of the directors. This is an area that can be cut as minimum wage legislation does not apply to directors of limited companies; therefore, they are free to pay themselves as little as they choose.

If you have informed your liquidator that you have been paying yourself a salary that falls below the National Minimum Wage (NMW) or National Living Wage (NLW), they may take the information given and submit a confirmation of your claim using these figures. But thiswill leave you with a pay-out which is under-valued. However, what your liquidator may not know is that everyone (including directors of limited companies) is eligible to claim redundancy based on the NMW (or NLW for over 25 years of age) regardless of the salary that has actually been taken.

NMW is an implied legal right for all employees (a director is an employee) regardless of what their verbal or written contracts states. If a director has been paying themselves below this rate, they will be entitled to claim from the RPS what the company is legally entitled to pay them, ie NMW.

To make sure your liquidator is maximising your directors redundancy claim, you need to know exactly how much you could possibly be entitled to. You can do this by contacting CFS Redundancy Payments Ltd, who will be able to help and assess your position and quantify the value of any possible claim. You will then be able to use this figure and compare against what your insolvency practitioner is forecasting you will receive.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

What happens if my company needs to go into liquidation but I cannot afford an insolvency practitioner?

Company liquidation always comes with a cost attached. As part of the liquidation procedure, a company’s assets will be sold, or ‘liquidated’, by the insolvency practitioner in order to raise as much money as possible with which to settle the business’s liabilities. Ordinarily liquidation costs are funded as part of this process, with the insolvency practitioner keeping a portion of the money raised to cover their own fees before distributing the remainder amongst the creditors.

If this is not possible due to the company having insufficient assets, the director would look to pay these fees from their own personal finances. In some cases, however, this simply may not be possible. Unfortunately, if a company is insolvent it goes without saying that there is often very little money going spare, both in the business, and also for the director on a personal level.

Should your company have very few or no assets and your personal finances cannot stretch to funding the cost of the liquidation, there may be another way of raising the money.

Many people are unaware that company directors are entitled to make a claim for directors redundancy pay should their company become insolvent and consequently enter liquidation. However, should you qualify, then director redundancy pay can be used to fund the liquidator’s costs.

In addition to claiming for redundancy pay you may also be entitled to receive additional compensation for unpaid holidays, notice pay, and unpaid wages.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Do I need to have an employment contract with my company to claim directors redundancy pay?

An employment contract does not have to be written; it can also be verbal or implied. The existence of the contract will help confirm your employment status and it will give clear evidence of your start date, hours worked and holiday entitlement amongst other things.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can directors be liable for the debts of their limited company?

When a company gets to the point where it is struggling to keep up with liabilities when they fall due, options will need to be considered to protect both the business and its creditors from incurring further losses. If your company has an increasing amount of debt, you might possibly be wondering who would be liable to pay the debts back if the business is unable to do so. Limited liability is one of the main benefits of trading as a limited company. In terms of the law, a limited company is seen as a completely separate entity from the company’s directors and shareholders. When a company is experiencing financial difficulties, limited liability really comes into play. Any debts that the company has accrued, in the company’s name, belong entirely to the company. Therefore, should an insolvent business cease trading and enter liquidation unable to fully satisfy its outstanding creditors, the debts the company has amassed will die with the company.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Who can help with Personal Guarantees?

The exception to the above rule, that the debts die with the company, is if any of the company debts were personally guaranteed by a director. A personal guarantee (PG) is when the borrower makes an agreement with the lender, that if the business is unable to pay back the money it owes, it will be the responsibility of the Personal Guarantor to take the debt on and therefore they will be required to pay back the debt from their own personal funds.

PGs are often requested on property leases, company credit cards and large loans, particularly to newly incorporated businesses. If you have any doubt as to whether you have personally guaranteed any debt for your business, you should make it a priority to check through all your original paperwork for information on this. If your company is struggling financially and you have personally guaranteed the majority of the debts, your options may well be different to the ones available to you if no personal guarantees had been signed.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How do I pay off Personal Guarantees?

Many PGs that are given by directors of the company, turn out to be invalid and are unenforceable against them by the creditors. Our legal team will be happy to review all documents and will inform you if the PGs are valid. Should it be determined that the PG is valid, if you would like, we can help to negotiate settlement terms with the creditors. This could either be a discounted lump sum payment or a payment plan over an extended period of time. In certain circumstances, we may be able to use your director’s redundancy payment from RPS to settle the whole of the debt.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

How do I claim for director redundancy pay?

The average director redundancy claim is for around £11,000, and so this can be a real lifeline when your company has been closed down due to insolvency and is forced into liquidation.

Claims must be made through the Redundancy Payments Service (RPS), which is part of the Insolvency Service. If the director redundancy claim is successful, it will then be paid out by the National Insurance fund.

Claims for redundancy and other statutory payments should usually be made within six months of the liquidation, although this can be extended to 12 months in some circumstances.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can IR35 contractors claim for Directors Redundancy Pay?

With so many contractor and personal services businesses being badly affected by the coronavirus pandemic; dealing with lost contracts and a significantly reduced prospect of finding new work; being able to claim for Directors Redundancy Pay is now hugely important following on from company liquidation.

But when can IR35 contractors claim for director redundancy pay?

IR35 contractors and Directors Redundancy Claims

IR35 contractors running their own limited companies can claim for Directors Redundancy Pay in the same way as any other company director so long as they were bona fide employees, working under defined terms of employment, with at two years continuous employment, and being paid regularly via PAYE.

Quite often in the liquidation of an IR35 contractors limited company, HMRC will be the largest and sometimes the only creditor in the company liquidation. This is because the director has failed to provide a proportion of ongoing income to pay HMRC taxes, including VAT, PAYE and Corporation Tax. Often money taken out of the company by the director can only be classed as drawings because of the lack of provision for taxes and this creates a substantial overdrawn Directors Loan Account balance.

Even though the director may be entitled to make a Directors Redundancy Claim, it is unlikely to be processed for payment by the Redundancy Payments Service (RPS) whilst ever there is an overdrawn Directors Loan Account balance owed to the company’s liquidator.

This is because RPS, as part of the Insolvency Service, is entitled to set off the likely value of the Directors Redundancy Claim against the overdrawn Directors Loan Account balance owed to the company’s liquidator by the director.

So it is vital that you take professional advice on Redundancy Payments for Directors before you take steps to liquidate your limited company.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Can I still claim for Directors Redundancy Pay if I have an overdrawn Directors Loan Account?

A Director’s Loan Account records transactions between a director and the limited company. This usually starts with any initial investment in the company made by the director and then includes any monies withdrawn from the business by the director.

As the company is a separate legal entity to its director, any monies taken that exceed the amounts invested creates an overdrawn position which are essentially loans from the company which cannot be written off and must ultimately be repaid by the director.

The balance on a Directors Loan Account has to be disclosed in the company’s year-end accounts along with movements on the Directors Loan Account during the year. So there is no hiding the Directors Loan Account from scrutiny.

If you consider that your overdrawn directors loan account may affect your directors redundancy claim, please contact us straight away.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Currently, the maximum amount of a director’s total claim is £29,006. Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

What is a Directors Loan Account?

When a company enters liquidation, any overdrawn balance on the Directors Loan Account must be repaid to the liquidator. If a director refuses to repay or cannot afford to repay the overdrawn Directors Loan Account balance owed to the company, the liquidator will ultimately be able to take legal action through the courts, leaving director at risk of personal bankruptcy.

Running an overdrawn Directors Loan Account when it cannot be repaid also makes directors vulnerable to directors disqualification proceedings as an investigation is always undertaken by the Insolvency Practitioner as part of the company liquidation process.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

Currently, the maximum amount of a director’s total claim is £29,000. Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

What can I do if I have an overdrawn Directors Loan Account?

Normally it is the director who initiates the liquidation process by instructing an Insolvency Practitioner to put the company into creditors voluntary liquidation. At the same time that the director takes these steps he should also consider asking the company accountant to undertake a review of his Directors Loan Account, especially if it is showing an overdrawn balance for him to repay. The accountant may find that reimbursed business expenses incurred by the director have been incorrectly treated as drawings or that assets introduced by the director or company debts paid by him have been incorrectly analysed in the company’s books and records. Making the necessary adjustments would reduce or eliminate the amount owed by the director on his Directors Loan Account.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Can I still make a Directors Redundancy Claim if I have an overdrawn Directors Loan Account?

So, it is vital that the director takes the steps outlined above to minimise any overdrawn Directors Loan Account balance and where there is clearly a balance owed to the company, then the director should take immediate steps to agree a repayment plan with the liquidator. If this can be done by way of a deferred repayment plan and the director is able to make at least one payment to the liquidator, then the liquidator may be able to confirm to RPS that no monies are owed by the director because the repayment plan is in credit. This may enable RPS to process and pay out the Directors Redundancy Claim.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Can Redundancy Pay for Directors be less than National Minimum Wage?

Where a director has been paid at less than National Minimum Wage, when they submit a Directors Redundancy Claim, they will be asked to sign a Declaration to the effect that even though they were a qualifying worker entitled to be paid at NMW, they were actually paid less than NMW. This declaration contains an acknowledgement that the RPS may refer the claim to HMRC and the Insolvency Service’s Investigation and Enforcement Services (IES) for breach of the National Minimum Wage Act 1998. It is unclear what if any action will be taken against the director as a consequence of them signing the Declaration.

In 2021, RPS received a number of fraudulent Directors Redundancy Claims. Although these Directors Redundancy Claims passed the verification checks undertaken by IPs, the Directors Redundancy Claims were later found to be based on falsified documents. HMRC, as the body with overall control and management of the National Insurance Fund, is taking forward investigation into the fraud. As a result of this, the RPS has implemented additional controls which have stopped further fraudulent Directors Redundancy Claims being processed and increased checks on new claims being received.

The RPS will now no longer use RP3 forms to gather information for Directors Redundancy Claims. Instead, a new directors’ questionnaire is being issued in its place. Although similar to the RP3, this new questionnaire asks more specific questions to assist the RPS in establishing whether or not the director held employee status. It also includes requests for documents to support the Directors Redundancy Claims, such as contract of employment, HMRC employment history, P60s, wage slips and the latest full set of company annual accounts.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Can I claim director redundancy payments from my own limited company?

Yes, you can claim redundancy from your own limited company, even if you were the sole director and also the sole 100% shareholder and you put the company into liquidation yourself.

Many directors whose companies are facing financial difficulties are unaware of this fact. A redundancy payment from the government can be a useful lifeline for you at this most difficult time.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Who can help me to claim director redundancy pay?

Only claims management companies authorised and regulated by the Financial Conduct Authority can assist with your redundancy claim. CFS Redundancy Payments Ltd is a CMC authorised and regulated by FCA. Our senior members of staff have worked in the insolvency industry for many years and have a great deal of experience of helping directors and other employees to make successful redundancy and other related claims for their maximum statutory entitlements.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Am I eligible to claim director redundancy pay?

Various factors are taken into consideration when determining your eligibility, including

You were employed by the company for more than 2 years
However, with less than 2 years employment you can still claim for unpaid wages, notice pay & holiday pay
Taking all or part of your remuneration as a salary under PAYE
You received P60’s at the end of each tax year
You got sickness pay and the company contributed to your pension scheme
You invested your own money in the company and held shares in it
You were notclassed as a non-executive director
You worked at least 16 hours per week
You are owed wages and holiday pay

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

How do I claim director redundancy?

Claims for director’s redundancy pay must be made through the Redundancy Payments Service (RPS). If you are eligible for redundancy, then this will be paid from the National Insurance Fund. Some of the information requested by RPS is ambiguous and confuses many directors. One simple mistake on any one of the online forms can result in your entire claim being rejected.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered from 8am until 8pm in the UK. All calls are free including mobiles.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

When can I make a directors redundancy claim?

A directors redundancy claim can be made as soon as your company enters into liquidation.

Their claim for directors redundancy pay must be made within 6 months of the redundancy occurring. The date of the directors redundancy is often the date the company went into liquidation. So, contact us straight away to start your claim.

CFS Redundancy Payments Ltd is a claims management company (CMC) authorised and regulated by the Financial Conduct Authority to assist with directors redundancy claims arising from company liquidations. Only a CMC with FCA regulation can process directors redundancy claims. We will use our vast experience to ensure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

When can I make a holiday pay claim?

A claim for holiday pay must be made within 12 months of your redundancy. You can claim for unpaid holidays not taken from your entitlement arising during the 12 month period preceding the liquidation. You may be entitled to carry forward unused holidays to the following year. This will increase the size of your claim and may bring it up to the maximum claim of 6 weeks pay.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm here in the UK.

When can I make claim for any unpaid salary that I am owed?

There is no time limit within which you can claim for unpaid wages & salaries, so your claim can be made at any time. You can claim up to a maximum of 8 weeks unpaid wages and where you have been unpaid for a long period of time, we will help you to claim the most advantageous 8 week’s pay. But don’t wait too long to claim as it is likely that you can claim for other entitlements may be lost where there are strict time limits in place.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

How long does the process take from submission of claim to actual payment?

It is the aim of RPS to process all directors redundancy claims within 6 weeks from the date of receipt of your claim. So, the sooner we submit your claim to them, the quicker the money will be in your bank account. Usually, the whole redundancy process takes around 6 to 8 weeks. So, if you instruct CFS Redundancy Payments Ltd today by calling us on 0161 533 0232 or by email to [email protected], your director claim could be settled sooner than you think. We will deal with your entire claim from start to finish. Based on information you give us, we will submit your RP1 form which details your claims for Redundancy pay, Unpaid wages and Holiday pay. Once your Redundancy claim has been processed for payment by RPS we will then submit your Notice pay claim. Usually, all 4 parts of your claim are processed and paid out by RPS within 8 weeks following the submission of your RP1 form.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm here in the UK.

When can I claim for statutory notice pay?

You can claim statutory notice pay at the end of your statutory notice period and after your claim for redundancy has been submitted and you have been given an LN reference number by Redundancy Payments Service (RPS).

You can then claim for notice pay which is 1 week’s pay for each year of service, up to maximum of 12 week’s pay. As it is a statutory entitlement it does not matter what it may say about the length of your notice period in your contract of employment, if you have one.

We will complete a second online application to get this money for you. We can only complete this second application after the time that your notice period has ended. By this stage you should have already received your redundancy payment, your unpaid wages and your holiday pay.

Don’t worry about keeping track of when your notice period ends. We will contact you when the application can be made.

Each person’s notice period is different, so don’t worry if we contact some of the former directors before we contact you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

What happens with benefits and earnings received during my notice period?

If you’ve been made redundant, it’s very important you apply for unemployment related benefits. Universal Credit has replaced the following benefits:

Child Tax Credit
Housing Benefit
Income Support
income-based Jobseeker’s Allowance (JSA)
income-related Employment and Support Allowance (ESA)
Working Tax Credit

If you apply for statutory notice pay, we will ask you about benefits you applied for during your notice period and also money you earned during that period. RPS normally deduct from your payment the value of any benefits you received and any money you earned during your notice period.

If you choose not to apply for benefits, RPS may still make a deduction from your statutory notice payment. RPS may deduct the value of the benefits you could have received if you’d chosen to apply.

We suggest that you apply for any benefits for which you may be eligible. You can find information about what benefits you may be eligible for at: www.gov.uk/benefits-calculators

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm here in the UK.

What is a directors redundancy claim for?

By law, eligible directors are entitled to claim half a week’s pay for each full year of service under 22 years of age; one week’s pay for each full year of service between 22 and 41 years of age; and one and a half week’s pay for each full year of service over 41 years of age.

Company directors and other employees can claim up to 30 weeks Redundancy pay, which is currently capped at £572 per week. They can also claim up to 8 weeks unpaid wages and 6 weeks holiday pay; together with a maximum of 12 week’s notice pay, again all capped at £572 per week.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

What is the maximum redundancy I can claim?

The maximum available for redundancy and other statutory entitlements is as follows:

Redundancy pay – £17,160 capped at 30 weeks pay. This is tax free.
Notice pay – £6,864 capped at 12 weeks. Earnings and benefits are deducted and the balance is taxed at 28%.
Unpaid holidays – £3,432 capped at 6 weeks and taxed at 28%.
Unpaid wages – £4,576 capped at 8 weeks and taxed as above at 28%.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

Can I claim for directors redundancy pay if my company goes into Administration?

Yes, you can claim for directors redundancy pay from your own limited company, even if you were the sole director and the sole 100% shareholder and you put the company into administration yourself. If your company goes into liquidation following a period of administration, you can claim redundancy pay and notice pay from the date of liquidation. However, your claims for unpaid wages and holiday pay will be based on the date of the administration.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm here in the UK.

Can I claim for directors redundancy pay if my company was in a CVA before liquidation?

If your company goes into liquidation following a Company Voluntary Arrangement, you can claim redundancy pay and notice pay from the date of liquidation. However, your claims for unpaid wages and holiday pay will be based on the date the company entered into the CVA.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

What would stop a directors redundancy claim from being approved?

There are a number of reasons why a directors redundancy claim can be rejected by RPS. The most common ones are that the director was not actually on the company payroll and was paid only via dividends or that the company had traded for less than two years before it was liquidated, or that your employment has been transferred, using TUPE regulations, to the new company which bought the assets and business of the old company.

Other factors which could invalidate a claim for director redundancy include the claim not being made to RPS within 6 months of the director redundancy occurring or the company not actually entering into insolvent liquidation.

Looking at these reasons in a bit more detail. In order for a director to make a successful claim for director redundancy, they must be classed as an employee of the company as well as being a director. This means that the director must have been taking a regular wage or salary paid through the company payroll and via the PAYE system. If a director has not been paying themselves in this manner, or has instead been extracting money from the company solely through dividends or via their director’s loan account, then they will not qualify for redundancy and the various other statutory entitlements which are only available to bona fide employees.

To qualify for redundancy pay, directors who were also company employees, must have at least 2 years of continuous employment with the company. This means that the company must have been incorporated and trading for more than 2 years. In some cases, a limited company may be formed to take over the sole tradership business which the director had previously been running. However even though there is often a going concern transfer of the old business to the limited company, the period for which the director was in business as a sole trader does not count as continuous employment for redundancy purposes should the new limited company subsequently fail and enter into insolvent liquidation. And the reason being is that a sole trader cannot be an employee of their own business. The same would apply to a partnership business where the old partners form a limited company to take over their old business.

If the company’s business is sold before the actual date of the liquidation, and the directors and other employees are offered jobs by the purchaser of the business, then TUPE legislation will mean that there has been a transfer of undertakings to the purchaser and so an actual director redundancy situation will not in fact have occurred. So effectively all employment contracts whether written, verbal or implied, will be inherited by the purchaser and there will have been a deemed continuation of employment. What this means is that in the future should the purchaser of the business be forced into liquidation, or bankruptcy, then the number of years’ service the directors and other employees have accrued with the original company will be carried forward into the new business for the purpose of calculating redundancy entitlements.

Claims by directors and other employees must be made within 6 months of the date of redundancy occurring. Often this is held to be the date that the company ceased trading, although on some occasions, it can be the actual date the company formally entered into liquidation. Redundancy claims and other associated employment claims cannot be submitted to Redundancy Payments Service (RPS) until the company is actually placed into liquidation, and the liquidator has received a Case Number (CN) reference for the company from RPS. So, in cases where trading ceased and redundancies occurred more than 6 months before the company officially enters into liquidation, future redundancy claims could be in jeopardy. However, so long as redundant employees give the company (or the advising insolvency practitioner) written notice of their intention to claim redundancy within 6 months of it occurring, then they can still make a claim in the future. Other claims, such as the one for unpaid holiday pay, have to be brought within 12 months of redundancy, so this is often viewed as the long stop date for redundancy claims and the other associated employment claims being made and submitted to RPS as all claims have to be made at the same time on the same online claim form, known as an RP1.

To be able to claim director redundancy, the company must be placed into insolvent liquidation. This is either a Creditors Voluntary Liquidation (CVL) or a Compulsory Liquidation (CMP). Both types of insolvent liquidation result in the remaining assets of the assets being realised and the proceeds used to pay for the costs of the liquidation and then if there is anything remaining, to pay a dividend to the creditors. After this has been done, the company can be formally dissolved and removed from the Companies House register at which point the company ceases to exist. In certain circumstances a company can be dissolved without first being liquidation. However, to qualify for dissolution, the company must have no creditors, ie it must be solvent. For many, the benefit of dissolving a company over liquidating it, comes down to cost. While a CVL typically costs around £5,000, dissolving a company can be achieved for just £10. However, not only does the dissolution route not adequately deal with any outstanding company creditors, it also makes you ineligible for redundancy. With the average claim for director redundancy coming in at over £12,000, you could well find yourself much better off financially by liquidating your business even accounting for the cost of the CVL. If you are considering closing your insolvent company, it makes sense to first get an idea of the amount of redundancy you may be able to claim by liquidating it before you make a final decision on how to proceed.

From the above, it follows on that the company must be insolvent for the directors and employees to qualify for redundancy pay. Because redundancy is designed to compensate for an individual in the event that their job role no longer exists, only directors of insolvent companies are eligible to claim. Should a director decide to close their solvent company this is viewed as a resignation rather than a redundancy. However, it should be remembered that the onus for making redundancy payments to staff lies with the company. Therefore, it is not unheard of for the potential cost of making redundancies to tip a company over from a state of solvency into a position where the directors could find themselves trading whilst insolvent.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8 am until 8 pm in the UK.

How is director redundancy pay calculated?

Director redundancy pay is based on your weekly earnings before tax which is your gross rate of pay. By law, eligible directors are entitled to claim half a week’s pay for each full year of service under 22 years of age; one week’s pay for each full year of service between 22 and 41 years of age; and one and a half week’s pay for each full year of service over 41years of age.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered between 08:00 & 20:00 in the UK.

What is TUPE (Transfer of Undertakings Protection of Employment)?

The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) protects employees’ terms and conditions when a business is transferred from one owner to another. This can happen to insolvent companies if the insolvency practitioner sells the whole of the business or certain assets of the business to a purchaser. Employees of the insolvent company become employees of the new owner on the same terms and conditions.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered between 8 am and 8 pm in the UK.

Can a director who was paid less than minimum wage claim director redundancy pay?

As long as directors have been taking a salary through the PAYE system, regardless of the amount, they will typically be entitled to claim redundancy. When a company is experiencing financial difficulties, more often than not, the directors will do everything within their power to try and improve the fortunes of the business. This means implementing cost-cutting measures wherever possible. Usually one of the first areas to be cut is the salary that directors pay themselves. This is an area that can be cut as minimum wage legislation does not apply to directors of limited companies; consequently, they are free to pay themselves as little as they choose.

If you have told your liquidator you have been paying yourself an amount which falls below the National Minimum Wage (NMW) or National Living Wage (NLW), they may simply take this information and submit confirmation of your claim using these figures leaving you with a pay-out which is undervalued. However, what your liquidator may not know is that everyone (including directors of limited companies) is eligible to claim redundancy based on the NMW (or NLW for those aged over 25) regardless of the level of salary which has actually been taken.

NMW is an implied legal right for all employees (a director is an employee) regardless of what their verbal or written contracts states. If a director pays themselves below this rate, they are entitled to claim from the RPS what the company is legally entitled to pay them e.g. NMW.

In order to make sure your liquidator is maximising your redundancy claim, you first need to know exactly how much you are entitled to. You can do this by contacting CFS Redundancy Payments Ltd who will assess your position and quantify the value of any potential claim. You can then use this figure to compare against what your insolvency practitioner is forecasting you will receive.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered in the UK.

Can I still claim director redundancy pay if I cannot afford an insolvency practitioner?

It is unavoidable that company liquidation comes with a cost attached. As part of the liquidation procedure, a company’s assets will be sold, or ‘liquidated’, by the appointed insolvency practitioner in order to raise as much money as possible with which to settle the business’s liabilities. Ordinarily liquidation costs are funded as part of this process, with the insolvency practitioner ring-fencing a portion of the money raised to cover their own fees before distributing the remainder amongst the outstanding creditors.

Should this not be possible due to the company having insufficient assets, the director would be expected to pay these fees from their own personal finances. In some cases, however, this simply may not be possible. Unfortunately, if a company is insolvent it goes without saying that there is often very little money going spare, both in the business, and also for the director on a personal level.

If your company has insufficient assets and your personal finances cannot stretch to funding the cost of the liquidation, there may be another way of raising the money.

It is not widely known that company directors are entitled to make a claim for redundancy should their company become insolvent and consequently enter liquidation. However, should you qualify, director redundancy can be used to pay for the closure of your insolvent company.

As well as claiming for redundancy you may also be entitled to receive additional compensation for unpaid holidays, notice pay, and unpaid wages.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered in the UK.

Do I need a employment contract with my own limited company to be able to claim directors redundancy pay?

A contract of employment does not have to be written; it can also be verbal or implied. It’s existence will help to confirm your status as an employee and it will give clear evidence of your start date, hours worked and holiday entitlement amongst other things.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered in the UK.

Who is liable for the business debts of a limited company?

Once a company gets to the stage where it is struggling to keep up with its liabilities as and when they fall due for payment, options need to be considered to protect the business and its creditors from incurring further losses. If your company has a significant amount of debt, you may be wondering who is liable for paying this back should the business be unable to do so. Limited liability is one of the main benefits of trading as a limited company. Limited liability offers the director a layer of protection against their company’s debts. In the eyes of the law, a limited company is seen as a complete separate entity from its directors and shareholders.

When it comes to a company experiencing financial issues, limited liability really comes into play. Any debts accrued by the company, in the company’s name, belong entirely to the company. Therefore, should an insolvent business cease trading and enter liquidation unable to fully satisfy its outstanding creditors, the debts will die with the company.

If your company is facing mounting creditor pressure and you are considering liquidation, then you may have a directors redundancy claim against the company if you were an employee of the company as well as being a director.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

Who can you help me with my Personal Guarantees?

The exception to the above rule that the debts will die with the company is if any company debts are personally guaranteed. A personal guarantee (PG) is when the borrower makes an agreement with the lender that should the business be unable to pay back the money it owes, responsibility will then switch to the individual who will be required to take on this debt and pay it back from their own personal funds.

If your company is facing increasing creditor pressure and you are considering company liquidation, then you may have a directors redundancy claim if you were an employee of the company as well as being a director.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 8 until 8 in the UK.

How can I settle my Personal Guarantees?

Many PG’s given by directors turn out to be invalid and therefore unenforceable against them by the relevant creditors. Our legal team will be happy to review any documentation you can get your hands on and let you know if the PG’s are valid. Where they turn out to be valid then, if you would like, we can help to negotiate favourable settlements terms with the creditor in question. This can be either a discounted lump sum payment or a series of deferred payments over an extended period of time. In certain circumstances, we may be able to use your director’s redundancy payment from RPS to settle the whole of the debt owed.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

How do I make a claim for directors redundancy pay?

The average director redundancy claim is for around £12,000, which can prove to be a real lifeline when your insolvent company has just been closed down and you income has dried up. Claims must be made through the Redundancy Payments Service, which is part of the Insolvency Service. If the claim is successful, it will then be paid by the National Insurance Fund.

Claims for redundancy and other statutory payments should usually be made within six months of the liquidation, although this can be extended to 12 months in some circumstances.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

Can a company director be made redundant?

A company director can be made redundant so long as they were on the company payroll just like the workers and staff were.

The selection and dismissal process applied must be the same one that would be followed if any other position was being made redundant.

When a business becomes insolvent and has to be liquidated, the company’s employees are automatically made redundant. The appointment of a liquidator in itself terminates all contracts that the company had, including contracts of employment whether they were written, verbal or implied contracts. The employees become eligible for statutory redundancy and other payments provided they meet certain conditions. The qualifying criteria for employee redundancy also apply to company directors, as long as they can prove their status as employees of the company.

If they fulfil the same criteria as the employees of the company, and have worked under a similar arrangement and were receiving wages or a salary through the PAYE system rather than being paid solely via dividends, it is likely that they will qualify for director redundancy pay and other statutory entitlements such as unpaid wages, outstanding holiday pay and notice pay.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8 until 8 in the UK.

What is a director redundancy claim for?

Directors can claim for directors redundancy pay, unpaid wages, holiday pay and notice pay, in the event that their limited company enters into insolvency. Your entitlement to directors redundancy pay depends on a number of factors. These comprise of the following. How long you have you been employed for; your age at the time of redundancy; your current salary, which presently is capped at £571 per week.

So, this is how your redundancy entitlement is calculated. If you were aged less than 22 when your employment started, you get half a week’s pay for each year of service up to age 22. Then from age 22 to age 40, you get one week’s pay for each year of service. Then you get a week and a half’s pay for each year of service after age 40. This calculation is subject to a maximum qualifying number of year service of 20 years. So, if your employment with the company started at age 42 and lasted until age 66, this would be 24 years’ service but it would be limited to a statutory maximum of 20 years and would equate to 30 week’s pay, at a maximum of £571 a week, which in monetary terms would mean a maximum possible pay out of £17,130. Redundancy pay is always tax free.

Unpaid wages are restricted to a maximum claim of 8 week’s pay restricted to £571 per week, which would be £4,568 gross. Unpaid wages are paid by RPS after deduction of basis rate tax and national insurance of 28%. There is no restriction on how far your claim for unpaid wages can be carried back. So, for instance if cash flow problems within the company resulted in you being unpaid for 6 months 3 years ago, then you could still claim for 8 weeks within this 6-month period. And you can choose the best 8 weeks to suit you in case your rate of pay fluctuated, so you can effectively select the 8 weeks where you should have been paid the most.

Your claim for holiday pay is restricted to a maximum of 6 week’s pay for holidays not taken within the 12-month period immediately preceding the date of your redundancy. Again, this is restricted to a maximum of £571 per week, which would result in a gross pay out of £3,426. This would be subject to deduction of tax & national insurance at 28%. It is worth noting that your unused holidays can be carried forward to the following year so long as this is provided for in your contract of employment or terms & conditions with the company.

Notice pay is calculated by RPS at one week’s pay for each year of service up to a maximum of 12 week’s pay. It is irrelevant how much notice your contact of employment afforded you, be it either one month or six months, your actual entitlement is always calculated as one week’s pay for each year of service restricted to 12 weeks maximum pay, which would be a gross claim of £6,852. You need to declare to RPS details of any earnings during your notice period if you started a new job, or alternatively any state benefits you claimed in this period.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered from 8am until 8pm in the UK.

When would a director not be entitled to claim for directors redundancy pay?

Not all directors will have valid claims for director redundancy pay. The most common reason why not, is firstly because the directors were not actually on the company payroll, and secondly because there might have been a going concern sale of the business before the liquidation.

Other factors which could invalidate a claim for director redundancy pay include the claim not being made to RPS within 6 months of the redundancy occurring or the director’s employment with the company being for less than the 2 years needed to qualify for directors redundancy pay.

Looking at these reasons in a bit more detail. In order for a director to make a successful claim for director redundancy pay, they must be classed as an employee of the company as well as being a director. This means that the director must have been taking a regular wage or salary paid through the company payroll and via the PAYE system. If a director has not been paying themselves in this manner, or has instead been extracting money from the company solely through dividends or via their director’s loan account, then they will not qualify for directors redundancy pay and the various other statutory entitlements which are only available to bona fide employees.

If the company’s business is sold before the actual date of the liquidation, and the directors and other employees are offered jobs by the purchaser of the business, then TUPE legislation will mean that there has been a transfer of undertakings to the purchaser and so an actual redundancy situation will not have happened. So effectively all employment contracts whether written, verbal or implied, will be inherited by the purchaser and there will have been a deemed continuation of employment. What this means is that in the future should the purchaser of the business be forced into liquidation, or bankruptcy, then the number of years’ service the directors and other employees have accrued with the original company will be carried forward into the new business for the purpose of calculating all redundancy entitlements.

Claims by directors and other employees must be made within 6 months of the date of the redundancy occurring. Often this is held to be the date that the company ceased trading, although on some occasions, it can be the actual date the company formally entered into liquidation. Directors redundancy claims and other associated employment claims cannot be submitted to Redundancy Payments Service (RPS) until the company is actually placed into liquidation, and the liquidator has received a Case Number (CN) reference for the company from RPS. So, in cases where trading ceased and redundancies occurred more than 6 months before the company officially enters into liquidation, future redundancy claims could be in jeopardy. However, so long as redundant employees give the company (or the advising insolvency practitioner or the company accountant who ran the payroll) written notice of their intention to claim redundancy within 6 months of it occurring, then they can still make a claim in the future. Other claims, such as the one for unpaid holiday pay, have to be brought within 12 months of redundancy, so this is often viewed as the long stop date for redundancy claims and the other associated employment claims being made and submitted to RPS as all claims have to be made at the same time on the same online claim form, known as an RP1.

To qualify for directors redundancy pay, directors who were also company employees, must have at least 2 years of continuous employment with the company. This means that the company must have been incorporated and trading for more than 2 years. In some cases, a limited company may be formed to take over the sole tradership business which the director had previously been running. However even though there is often a going concern transfer of the old business to the limited company, the period for which the director was in business as a sole trader does not count as continuous employment for director redundancy purposes should the new limited company subsequently fail and enter into insolvent liquidation. And the reason being is that a sole trader cannot be an employee of their own business. The same would apply to a partnership business where the old partners form a limited company to take over their old business.

To be able to claim director redundancy pay, the company must be placed into insolvent liquidation. This is either a Creditors Voluntary Liquidation (CVL) or a Compulsory Liquidation (CMP). Both types of insolvent liquidation result in the remaining assets of the assets being realised and the proceeds used to pay for the costs of the liquidation and then if there is anything remaining, to pay a dividend to the creditors. After this has been done, the company can be formally dissolved and removed from the Companies House register at which point the company ceases to exist. In certain circumstances a company can be dissolved without first being put into liquidation. However, to qualify for dissolution, the company must have no creditors, ie it must be solvent. For many, the benefit of dissolving a company over liquidating it, comes down to cost. While a CVL typically costs around £5,000, dissolving a company can be achieved for just £10. However, not only does the dissolution route not adequately deal with any outstanding company creditors, it also makes you ineligible for directors redundancy. With the average claim for director redundancy coming in at over £11,000, you could well find yourself much better off financially by liquidating your business even accounting for the cost of the CVL. If you are considering closing your insolvent company, it makes sense to first get an idea of the amount of director redundancy pay you may be able to claim by liquidating it before you make a final decision on how best to proceed.

From the above, it follows on that the company must be insolvent for the directors and employees to qualify for redundancy pay. Because redundancy is designed to compensate an individual in the event that their job role no longer exists, only directors of insolvent companies are eligible to claim. Should a director decide to close their solvent company this is viewed as a resignation rather than a director redundancy situation. However, it should be remembered that the onus for making redundancy payments to staff lies with the company. Therefore, it is not unheard of for the potential cost of making redundancies to tip a company over from a state of solvency into a position where the directors could find themselves trading whilst insolvent.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can I claim for director redundancy pay?

Yes, you will be eligible to claim director redundancy, so long as you were on the payroll and paid regular wages or a salary by the company. The answer is also yes, you can, if you were the only director of the limited company and still yes, you can, even if you were the sole shareholder in the company.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can directors make themselves redundant?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

When can I make a claim for directors redundancy pay?

We can help you to submit a claim as soon as the company goes into liquidation or administration. And don’t worry, we can prepare your redundancy claim from start to finish.

Your director redundancy claim has to be submitted to Redundancy Payments Service within 6 months of the redundancy occurring. In some circumstances this can be extended to 12 months.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

What is the maximum director redundancy claim?

Currently, the maximum amount of a director’s total claim is £29,006.

This is made up of the following separate claims.

Redundancy pay – 30 week’s pay always tax free.

Unpaid wages – 8 week’s pay, subject to tax at 20% if you are aged over 65.

Holiday pay – 6 week’s pay, subject to tax at 20% if you are aged over 65.

Notice pay – 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

What happens to benefits and earnings during my notice period?

If you claim benefits or start a new job after being made redundant you will still be able to claim for director redundancy pay. However, your claim for notice pay will be reduced by the amount of your benefits and/or new earnings during your statutory notice period which is one week’s pay for each year of service up to a maximum of 12 weeks.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can all company directors be made redundant?

Directors, just like members of staff, can be made redundant provided that they were on the company payroll. The selection and dismissal process applied to claims for director redundancy pay must be the same as the one followed by the company when making any other employee redundant.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Do director need contracts of employment with their own companies?

There is no legal requirement for a company director to have an employment contract with their own limited company. It is however useful if they have a summary of the main terms of their employment. This will make it easier for them to claim director redundancy pay in the event of company liquidation. We can help you to prepare a summary of the terms and conditions of your employment with the company in the event that you are considering director redundancy.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/.

Can I claim for director redundancy pay even if I cannot afford to pay for a liquidation?

On occasions the liquidator may agree to wait to be paid their fees from your director redundancy claim. This means that the liquidation can be started straight away without you having to pay the fees upfront out of your own pocket. Your director redundancy claim can be submitted as soon as the company goes into liquidation.

In such a situation, you need to know that your director redundancy claim is correctly paid and is for the maximum entitlements available to you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

How much will I get from my directors redundancy claim?

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Currently, the maximum amount of a director’s total claim is £29,006.

This is made up of the following separate claims.

Redundancy pay – a maximum of 30 week’s pay, always tax free.

Unpaid wages – up to 8 week’s pay, subject to tax at 20% if you are aged over 65.

Holiday pay – up to 6 week’s pay, subject to tax at 20% if you are aged over 65.

Notice pay – a maximum of 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working in a new job.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can a director claim for holiday pay owed?

We can help you to submit a claim as soon as the company goes into liquidation or administration. And don’t worry, we can deal with all parts of your claim from beginning to end.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can directors claim directors redundancy pay?

Company directors can claim for directors redundancy pay, and other benefits, in the event of company liquidation or administration but only if they were on the payroll alongside the other employees. Some directors are not aware of this fact and we are here to help all directors to maximise their director redundancy claims and other employment claims for statutory benefits. On some occasions, directors can use their redundancy claim to pay the liquidator’s fees or to buy back company assets so they can re-start the business.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

How does a director make a claim for unpaid wages?

As soon as a liquidator is appointed, we will help you to claim your maximum entitlement for unpaid wages. You can claim for up to 8 week’s unpaid wages. These can be the 8 weeks where you would have earned the most.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. All calls are answered 24/7 in the UK.

Can all directors get directors redundancy pay?

Directors can claim for directors redundancy pay, unpaid wages, holiday pay and notice pay in the event that their limited company enters into insolvency provided that they were paid a regular wage or salary through the company payroll. Many years ago, this was not well known. It was widely believed that company directors were unable to claim for directors redundancy pay and other statutory entitlements from the Redundancy Payments Service (RPS) because it was usually their actions or inactions which had led to the company’s insolvency and the resultant liquidation. It was also a no go where the director was also a shareholder and hence owner of the company.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can directors be made redundant whilst on furlough?

Company directors and other employees could be made redundant whilst on the UK government’s furlough scheme and were therefore entitled to claim director redundancy in the event that their company was forced to go into liquidation.

If you were in this position then please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your claim.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

How long does the director redundancy claim process usually take?

RPS aims to process claims within 6 weeks from the date of receipt of your claim by them. So, the sooner we submit your claim to RPS, the quicker the money will hit your bank account. Generally speaking, the whole redundancy process takes around 6 to 8 weeks. So, if you instruct CFS Redundancy Payments Ltd today by calling us on 0161 533 0232, your director claim could be settled sooner than you think. We will deal with your entire claim from start to finish. Based on information you give us, we will submit your RP1 form which details your claims for Redundancy pay, Unpaid wages and Holiday pay. Once your claim for directors redundancy pay has been processed for payment by RPS we will then submit your Notice pay claim. Usually, all 4 parts of your claim are processed and paid out by RPS within 8 weeks following the submission of your RP1 form.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can a company director claim for notice pay?

We will prepare your claim for statutory notice pay at the end of your statutory notice period, which is one week’s pay for every year of service up to a maximum of 12 weeks. As it is a statutory entitlement it does not matter what it may say about the length of your notice period in your contract of employment, if you have one.

You don’t have to worry about keeping track of when your notice period ends. We will do this for you and then contact you when the application can be made.

Everyone’s notice period is different, dependent on their length of service so don’t worry if we contact some of the former directors before we contact you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will always be answered 24/7 in the UK.

Can company directors still claim directors redundancy pay if the company went into liquidation more than 6 months ago?

Yes, they can still claim for directors redundancy pay so long as they notified the company as their employer, or the liquidator, of their intention to claim director redundancy pay within that 6 month period. Quite often directors are able to find an email or note they sent to one of their co directors or the company accountant or the liquidator, stating that they are planning to claim director redundancy pay at the appropriate juncture once the liquidation process has started.

CFS Redundancy Payments Ltd is a claims management company (CMC) authorised and regulated by the Financial Conduct Authority to assist with directors redundancy claims arising from company liquidations. Only a CMC with FCA regulation can process directors redundancy claims. We will use our vast experience to ensure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can directors carry forward unused holiday pay?

Generally speaking, company directors are able to carry forward unused holidays if their employment contracts with the company allow them to do so. However, many company directors do not have formal written contracts of employment and so we need to tell you what is likely to happen in such situations.

The Covid-19 pandemic has resulted in the loss of many jobs. As a result, the government has passed a number of measures to support employers and also to ensure that employees are given a certain level of protection. One such measure relates to statutory holiday and the difficulty in taking annual leave during the Covid-19 pandemic and particularly during furlough. This situation applies to both directors and all other company employees.

The Working Time Regulations 1998 provides that the statutory basic annual leave entitlement of four weeks may only be taken in the leave year to which it relates. Employers and their employees can agree to carry over any additional statutory leave into the next leave year only by means of a relevant agreement. However, as many directors do not have a contract of employment, directors have rarely been able to carry over any statutory leave.

If the employee/director can demonstrate that it was not reasonably practicable for them to take any or all of their leave during the leave year, they can carry forward unused leave which may be taken in the two leave years immediately following the leave year in respect of which it was due.

These new rules apply to the four weeks’ annual leave (20 days) provided for by regulations but not to the additional 1.6 weeks’ annual leave (8 days bank holidays). On this basis we will be submitting claims to the Redundancy Payments Service for up to a maximum of four weeks carried over leave for directors and employees in circumstances that are consistent with these regulations.

(3) A worker’s leave year, for the purposes of the regulations, begins:

(a) on such date during the calendar year as may be provided for in a relevant agreement; or

(b) where there are no provisions of a relevant agreement which apply:

(i) if the worker’s employment began before 1st October 1998, on that date and each subsequent anniversary of that date; or

(ii) if the worker’s employment begins after 1st October 1998, on the date on which that employment begins and each subsequent anniversary of that date.

On this basis we will now calculate and submit holiday pay accrual in accordance with these provisions and using these dates unless there is evidence to the contrary in a relevant written contract of employment or statement of terms and conditions of employment.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can I claim for directors redundancy pay based on dividends only?

You can still claim director redundancy pay if you were also on the company payroll as well as topping up your earnings with dividend payments. But in such a case your directors redundancy claim and other associated employment claims, would be based purely on the payroll element of your earnings and this would not include your dividends.

There is nothing wrong with taking dividends from your company but if it’s done in isolation and you are not on the payroll, it means you don’t qualify for director redundancy pay. As part of their tax planning, many directors may elect to take only a low salary via the company payroll, and then top this up with dividends throughout the year. When you can prove that you have been paid regularly through the company’s payroll scheme, you will be able to make a claim for directors redundancy pay if your company enters insolvent liquidation.

A word of warning now, however. If you continue to take dividend payments once the company becomes insolvent, then the liquidator may deem such dividends to have been taken illegally and he/she could order you to repay them. So, if you fear that your company may soon be trading insolvently you should contact your accountant now and arrange for the dividends you have been drawing to be replaced by a salary paid through the company’s payroll. Whilst you will not achieve 2 years’ service this way (and miss out on a directors redundancy claim) you will be entitled to claim for unpaid wages, holiday pay and notice pay if the company needs to be subsequently liquidated.

So, what requirements other than being on the payroll must be met to claim director redundancy? You need to:

Work under a formal contract of employment for a minimum of two continuous years
Work for at least 16 hours per week
Not be a non-executive director acting simply in an advisory capacity
Be owed money by the company

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a regulated claims management company authorised by FCA to handle claims involving employment related matters.

Call us at any time on 0161 533 0232 and let us deal with your directors redundancy claim.

Can a director be made bankrupt for business debts?

Generally speaking, a company director cannot be made bankrupt for the business debts of a limited company. This is the whole point of a company having “limited liability”. The position is different of course if you have personally guaranteed any of those business debts. But you will be relieved to know that you can use your directors redundancy payment to settle any personal guarantees given. This is an additional service that we offer. First of all, we will look into the enforceability or otherwise of the personal guarantee, in conjunction with our legal advisors. You will be relieved to know that many personal guarantees turn out to be invalid and therefore unenforceable by the creditor against the director. On those occasions where the PG is valid, we can look to negotiate a settlement deal with the creditor on your behalf. And as mentioned above, you can use your redundancy claim as part of the settlement offer.

CFS Redundancy Payments Ltd is a claims management company (CMC) authorised and regulated by the Financial Conduct Authority to assist with directors redundancy claims arising from company liquidations. Only a CMC with FCA regulation can process directors redundancy claims. We will use our vast experience to ensure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can I claim director redundancy pay if I was paid at less than national minimum wage?

Yes, you most definitely can claim directors redundancy pay if you were paid at less than the national minimum wage. A lot of directors pay themselves less than NMW as part of their tax planning regime. RPS are currently paying redundancy claims at not less than NMW which can mean vastly enhanced claims for many directors. Currently directors are required to sign a declaration form confirming that whilst they were paid at less than NMW they want their director redundancy claim to be paid by RPS at NMW.

If you qualify for director redundancy pay then your payment will be based on the salary you have been earning in the months leading up to your company’s liquidation, up to a maximum weekly pre-tax amount of £571. However, where do you stand if you have been paying yourself substantially less than this, maybe even less than the minimum wage?

Put simply, for the purposes of claiming director redundancy pay, this does not matter. It is understood that when a company is struggling under the weight of increasing financial pressures, directors often put money-saving measures in place to try and improve the company’s financial in position and in a lot of cases the first thing to be cut is the salary the director pays themselves. Unfortunately, this can mean the director is receiving a salary at a level which is lower than the national minimum wage.

With this in mind, however, you must have been paying yourself something in order to qualify for director redundancy, and this must have been done through the company payroll. If you are unsure whether you have been paying yourself this way, then it is always a good idea to speak to your accountant or whoever ran the company payroll who will be able to confirm this for you.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can I claim redundancy if my company is in compulsory liquidation?

If your company has been forced into compulsory liquidation by a creditor taking court action, then you will be pleased to know that you can still claim for director redundancy pay. You can also claim for holiday pay, unpaid wages and statutory notice pay. So it does not matter whether the liquidation process has been instigated by you as company director, a creditors voluntary liquidation, or by one of your creditors taking court action against the company, a compulsory liquidation, you as an employed director, can still make a claim for directors redundancy pay to the Redundancy Payments Service.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK 24 hours a day.

Can every company director claim for director redundancy pay?

Every director can claim for redundancy pay, unpaid wages, holiday pay and notice pay, in the event that their limited company enters into insolvency provided that they were on the company payroll just like any of the staff they may have employed.

Are there any requirements other than being on the payroll which must be met to claim director redundancy? Well you need to:-

Work under a formal contract of employment for a minimum of two continuous years
Work for at least 16 hours per week
Not be a non-executive director acting simply in an advisory capacity
Be actually owed money by the company

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can a director claim redundancy without an employment contract?

There is no legal requirement for a company director to have a written contract of employment with their own limited company. And so even without a employment contract they can still claim for director redundancy pay and all of the other statutory entitlements in the event of company liquidation. Contracts of employment can be written, verbal or implied. They are all legally binding. It is however very useful if there is an contract of employment available or at least a summary of the main terms of your employment. Based on the terms and conditions of your employment by the company, we can help you to prepare a summary document containing the main terms of your employment.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK 24 hours a day.

How will getting a new job affect my claim for director redundancy pay?

If you start a new job after being made redundant you will still be able to claim for director redundancy pay. The fact that an employed director has accepted an offer of employment to begin on a later date, or is intending to leave anyway, will not stop him being entitled to a director redundancy payment so long as they are made redundant whilst still employed by the company and also will not stop them from being entitled to make a claim to the RPS if the company does not pay them a director redundancy payment or other money it owes them.

So, if for instance you started a new job prior to the date of your redundancy, then this may invalidate your claim for director redundancy pay. This may sound simple and very logical, but if there is to be a sale of the business pre-liquidation, then in some circumstances the employees’ employment contracts will also get transferred to the purchaser and all rights to claim redundancy as part of the liquidation process will be lost.

Many people ask. How long should I wait before getting a new job? You should be aware that in all cases were a new job is started following the liquidation process then your claim for notice pay will be reduced by the amount of your new earnings during your statutory notice period, which is one week’s pay for each year of service up to a maximum of 12 weeks. So, if you are offered a new job but truly do want to maximise your claim for statutory notice pay (up to 12 weeks pay) then you should wait until the end of your notice period before starting your new employment.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK 24/7.

How soon after the liquidation can I claim for director redundancy pay?

You need to start your claim for director redundancy pay within 6 months of being made redundant. If you were employed right up to the liquidation date then you have to start your claim within 6 months following on from this date. You can begin the claim process simply by notifying the liquidator in writing of your intention to claim director redundancy pay at any time within this 6 month period. If you have done this already, then you don’t have to physically submit the claim until a later date. But it is always best to submit the claim within 12 months of your redundancy otherwise some of the statutory entitlements may be lost. Having said all of this, it is usual for a company to cease trading several months before the liquidation date and it is often the date that trading ceased that is viewed by the Redundancy Payments Service as the date of director redundancy.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK 24 hours a day.

Can I claim for director redundancy pay from my own limited company?

The simple answer is yes, you can, so long as you were on the payroll and paid regular wages or a salary by the company. The answer is also yes, you can, if you were the only director of the limited company and still yes you can, even if you were the sole shareholder and hence the only owner of the company. Many directors whose companies are facing financial difficulties are unaware of this.

As well as being on the payroll you also must:

Work at least 16 hours a week
Work for at least two years under a formal contract of employment
Not be a non-executive director acting only in an advisory capacity
Be owed money by the company for wages

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK at all times.

Is every director able to claim redundancy?

Every director can claim for redundancy pay and other statutory entitlements in the event that their limited company enters into insolvency provided that they were bona fide company employees.

Until recently the availability of director redundancy was a little known fact. It was widely believed that company directors were unable to claim redundancy pay and other statutory entitlements from the Redundancy Payments Service (RPS) because it was usually their actions or inactions which had led to the company’s insolvency and the resultant liquidation. It was also a no go where the director was also a shareholder and hence owner of the company.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK 24/7.

Who can help me claim director redundancy?

Only a Claims Management Company (CMC) which is authorised and regulated by the Financial Conduct Authority (FCA) can assist you with your director redundancy claim and submit it for processing by the Redundancy Payments Service (RPS). RPS is part of the Insolvency Service and is responsible for paying redundancy claims from the National Insurance Fund.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK 24/7.

How do company directors claim director redundancy pay?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be personally answered in the UK at all times of the day & night.

Who is able to help me with my personal guarantees?

CFS Redundancy Payments Ltd can help you with any personal guarantees you may have given for the company’s debts. And remember, not all personal guarantees are legally valid. There are all sorts of ways in which PG’s can be invalid and therefore unenforceable against you. Even for valid guarantees we can often negotiate favourable settlement terms and utilise your directors redundancy claim to pay off the guarantees.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your personal guarantee. Your call will be answered 24/7 in the UK.

Can I use my directors redundancy claim to settle my personal guarantees?

You can use your claim for directors redundancy pay to settle any personal guarantees you may have given. Quite often, following company liquidation, directors will have little resources left from which to pay PG’s and many find it a real god send to be able to use their directors redundancy payment to do this. We can help you to negotiate a favourable settlement deal with any of your personal guarantee creditors.

CFS Redundancy Payments Ltd is a claims management company (CMC) authorised and regulated by the Financial Conduct Authority to assist with directors redundancy claims and other employment related matters. Only a CMC with FCA regulation can process directors’ redundancy claims. We will use our vast experience to ensure that your claim is maximised.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your personal guarantee. Your call will be answered 24/7 in the UK.

How do I claim for directors redundancy pay?

Currently, the maximum gross amount of a director’s total claim is £31,976. After tax this figure is £29,007.

This is made up of the following separate claims for a director aged over 66 with more than 20 years service, an annual salary of more than £35,360 and no new job in their notice period; 30 weeks Redundancy pay; 8 weeks unpaid wages; 6 weeks holiday pay and 12 weeks notice pay.

Please click on this link to access our free to use director redundancy calculator to see how much your total directors redundancy claim could be worth to you.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is authorised and regulated by the Financial Conduct Authority to process directors redundancy claims arising from company liquidations.

Please contact us today on 0161 533 0232 or email [email protected]

Can all company directors claim directors redundancy pay?

Every director can claim for redundancy pay, unpaid wages, holiday pay and notice pay in the event that their limited company enters into insolvency, provided they were on the company payroll just like any of the staff they might have employed. They must also have more than 2 years continuous service, work more than 16 years a week in an executive/decision making position and be actually owed money by the company.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

Can you claim director redundancy without being on the payroll?

As well as being on the payroll the director must also:

Work at least 16 hours a week
Have been employed for more than 2 years
Be an executive director with an active role in the company’s affairs
Be owed money by the company

If you are entitled to director redundancy pay then you may also be entitled to receive other payments, such as outstanding holiday pay, unpaid wages and statutory notice pay. This can boost the overall redundancy package that you receive, and potentially help you pay for the formal liquidation process or buy the company assets back from the liquidator to help you to re-start the business.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered 24/7 in the UK.

How does the process for claiming director redundancy pay work?

Directors redundancy claims will be completed by us and processed by RPS in two stages. The first stage will be the submission and processing of your claims for directors redundancy pay, unpaid wages and holiday pay. Typically, it will take us around 6 weeks to secure the payment of these elements of your claim by RPS. The second stage will be the completion and processing of your notice pay claim, which will take a further week to be paid out by RPS.

This is our own bespoke directors’ redundancy payments process.

Receive and validate enquiry from a director
Establish eligibility for claim
If eligible for claim request full information from director
Ask additional questions where director has new job
Once all questions answered send the pre-contractual information document
Statement of all information received to be prepared as basis of claim
Director claim documents created and sent for signing and return
Request and receive the case number reference from Liquidator
Submit RP1 claim form online and send signed mandate letter to RPS
Any further questions raised by RPS are dealt with by us
At end of notice period final questions will be answered and RP2 claim form submitted
Payment of claim to director

CFS Redundancy Payments Ltd is a claims management company (CMC) authorised and regulated by the Financial Conduct Authority to assist with redundancy claims arising from company liquidations. Only a CMC with FCA regulation can process directors’ redundancy claims. We will use our vast experience to ensure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Speak to Emily at CFS Redundancy Payments today on 0161 533 0232 and let us help you with your directors redundancy claim.

Or email us for more information at [email protected]

Can I claim director redundancy from my own limited company?

You can claim director redundancy pay so long as you were on the payroll and paid regular wages or a salary by your company. You can also claim director redundancy pay if you were the only director of the limited company and also even if you were the sole shareholder in the company.

Although not always a straightforward process, directors who can prove their status as employees of their company can be eligible to make a claim for director redundancy pay from the National Insurance Fund (NIF). This is a Government fund run and administered by the Redundancy Payments Service (RPS) https://www.gov.uk/redundancy-payments-helpline which is part of the Insolvency Service https://www.gov.uk/government/organisations/insolvency-service

Directors will be able to claim directors redundancy pay as long as the company has been trading for at least two years, and they have had continuous employment during this time.

Various factors are taken into consideration when determining eligibility, including:

Taking a salary under PAYE, as well as receiving dividend payments
Having an active management role in the company
Working more than 16 hours per week
Being owed money by the company; whether that is the original investment in the company or arrears of salary/holiday pay, for example

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd by calling 0161 533 0232 right now and let us help you with your directors redundancy claim.

Does a director need a contract of employment with their own limited company?

There is no legal requirement for a director to have an employment contract with their own limited company. And so even without a contract of employment you can still claim for director redundancy pay and all of the other statutory entitlements in the event of company liquidation. However, it is always useful if there is a contract of employment available or at least a summary of the main terms of their employment. Please don’t worry if you don’t have a proper contract of employment with the company. We can help to prepare a summary of the main terms and condition of your employment in a form that will be acceptable to Redundancy Payments Service.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your director redundancy claim. Your call will be answered personally 24/7 in the UK.

How does a director claim director redundancy pay?

CFS Redundancy Payments Ltd is a regulated claims management company authorised by the Financial Conduct Authority to help and advise with director redundancy claims following on from company liquidation. Only an FCA regulated claims management company can process directors’ redundancy claims. We will always make sure that your maximum entitlements are claimed for you.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. All calls are answered in the UK, 24/7.

Who can help me to claim directors redundancy pay?

Anyone who is acting for or advising an individual on any employment related claim, and charging for doing so, must be regulated by the Financial Conduct Authority. This is because they are holding themselves out as a claims management company (CMC) by acting as an intermediary between the employee and their former employer. This covers independent HR consultants, most of which are not FCA authorised but should most definitely be.

Please click on this link to access our free to use director redundancy pay calculator to see how much your directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. All calls are answered personally in the UK.

Do I need to have an employment contract to be able to claim director redundancy pay?

There is no legal requirement at all for a director of a limited company to have a written employment contract with the company even when the director is the 100% shareholder and therefore the sole owner of the company. And so even without a contract of employment the director can still claim for director redundancy pay and all of the other statutory entitlements in the event of company insolvent liquidation. Employment contracts can be written, verbal or implied. They are all legally binding just the same. It is however very useful if there is an employment contract available or at least a summary of the main terms of your employment.

Based on the terms and conditions of your employment by the company, we can help you to draft a summary document containing the main terms of your employment which will be acceptable to Redundancy Payments Service when processing your claim for director redundancy.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your directors redundancy claim. Your call will be answered 24/7

Who pays director redundancy claims?

Directors who can prove their status as employees of their company are eligible to make a claim for redundancy and other associated employment claims from the National Insurance Fund (NIF). This is a Government fund run and administered by the Redundancy Payments Service (RPS) https://www.gov.uk/redundancy-payments-helpline which is part of the Insolvency Service https://www.gov.uk/government/organisations/insolvency-service

When RPS has paid out a directors redundancy claim it will submit a claim for this amount to the liquidator. Their claim will rank alongside the claims of the other creditors in the liquidation. It does not affect the director if there are no funds in the liquidation to pay a dividend to the creditors. The claim will have already been paid out and the debt due to NIF will simply get written off.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your directors redundancy claim. Your call will be answered 24/7 in the UK.

Will a claim for director redundancy pay have a bad affect on the liquidation?

If you have a valid claim for director redundancy pay then this will be submitted to the Redundancy Payments Services and processed for payment along with the other employee claims. When the claims are paid out by RPS, they will lodge a claim in the liquidation for the amount of all payments made to former employees and rank alongside the other creditors for the sum owed. If there are no funds in the liquidation to pay a dividend to the creditors then this will have no impact on your claim or on the liquidation process because your claim will have already been paid out.

Please click on this link to access our free to use director redundancy pay calculator to see how much your director redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your directors redundancy claim. Your call will be answered in the UK 24/7.

Can directors claim redundancy even if they were paid less than national minimum wage (NMW)?

The simple answer is yes, they can. However, unlike in the past, directors redundancy claims will no longer be automatically be uplifted to national minimum wage (NMW) unless the Insolvency Practitioner (IP) agrees the uplift.

Here at CFS Redundancy Payments Ltd, we shall continue to process directors redundancy claims at never less than national minimum wage, on the RP1 form which we submit online to RPS.

Upon receipt of the RP1, RPS will send a redacted copy of it to the IP (and to us on behalf of the claimant).

For every director redundancy claim submitted by us to RPS, the IP is required to submit an RP14A form online. The IP will have access to the company’s payroll records to do this and he will also have a copy of the redacted RP1 form.

The online RP14A form contains the following employee information.

Employee name

CHAMP case reference number (CN)

Employee full name

Date of birth

NI number

NI class

Employment start date

Date notice given

Employment end date

Basic weekly pay

Day of week paid

Owed wages from date(s)

Owed wages to date(s)

Amount(s) of owed wages

Holiday year start date

Number of days holidays owed

Weekly pay (52 week reference period – see notes below for full explanation)

So, where the IP indicates that the Basic weekly pay was the national minimum wage which for 2022/2023 is £380 for a 40 hour week, then the directors redundancy claim, and other associated employment claims, will all be processed by RPS at NMW rate of pay.

RPS will process the claims based on Basic weekly rate on the RP14A on the assumption that the IP has factored in the claimant’s hours worked per week when assessing the Basic weekly rate based on the evidence available to them. If the rate is below NMW then RPS will advise the claimant and the IP and it will be in the hands of the IP to consider agreeing the uplift. So, the uplift to NMW will no longer be automatic.

From our discussions with RPS, we understand that they are hoping to be able to amend the information required on the RP14A, to include the number of hours worked per week by the claimant. This however may take RPS several months to implement.

In addition to the RP14A, the IP must complete an RP14 form which is information on the insolvent company itself and must include the following information.

Company name

CHAMP case reference number (CN)

Company number

Date of incorporation

Company address

Company PAYE reference

Company directors’ details

Company shareholders details

Details of any associated companies

Did the above take on any employees from the insolvent company?

Number of employees made redundant by the insolvent company

Are any of the above claiming TUPE from a previous business?

Details of any previous business mentioned above

Should TUPE claims be accepted?

Were employees entitled to carry forward unused holidays?

Date of company insolvency

Has there been a transfer of the business?

Details of whom business was transferred to

Date of business transfer

Date the negotiations began

The 52 week reference period explained by the Insolvency Service (IS).

Changes to the reference period used to calculate the rate of holiday pay following redundancy as published by the Insolvency Service (IS).

The reference period applied to calculations for holiday pay only has been extended from 12 weeks to 52 weeks. This reference period change applies to all employees with variable pay. The change intends to provide additional protection to employees, particularly those with seasonal variations in pay.

The increased reference period was recommended by the Taylor Review of Modern Working Practices, which the Government progressed through the Good Work Plan. This change ensures holiday pay for employees with variable pay more accurately reflects their actual annual earnings.

What does this mean for insolvency practitioners (IP’s)

Insolvency practitioners should now calculate the rate of pay for holiday pay for all employees with variable pay using the 52-week reference period. This change is effective from July 2020.

How do insolvency practitioners (IP’s) notify the Redundancy Payments Service (RPS) of the rate of pay relating to holiday pay

In the short term and in order to ensure there is no disruption to payments being made to claimants, a dedicated email address will be set up for insolvency practitioners to use for the RPS to receive this additional rate of pay data.

The RPS is reconfiguring its systems and will work with insolvency practitioners to ensure that the automated interface to the RPS is able to receive this additional rate of pay as soon as possible.

The RPS is also updating its systems for claimants to submit their 52-week pay rate. This will include updating the claimant interface with RPS.

Claims after 6 April 2020

However, there may be some claimants since 6 April where this legislative change has not been applied and on the new basis of calculation are due a small top-up payment. The RPS is taking steps to review these payments and will pay any further amounts that may be due.

Where insolvency practitioners are dealing with large numbers of employees, the RPS inspectors will work closely with them to ensure the information is efficiently shared.

Changes to the reference period used to calculate the rate of holiday pay following redundancy. The Redundancy Payments Service process

These notes provide details on how insolvency practitioners (IP’s) should submit the secondary rate of pay for holiday pay to the Redundancy Payments Service (RPS).

As of 6 April 2020, the reference period for holiday pay has been extended from 12 weeks to 52 weeks. This change relates to holiday pay only and applies to both holiday pay accrued and holiday taken but not paid, for all employees with variable pay.

The RPS will still need the 12-week average to calculate all other components.

This is the process for providing second rate of pay.

At present the 52-week rate of pay cannot be submitted through IPUS. The RPS is working on IT changes which will allow the second rate of pay to be included in the RP14A and will send a further update when this is available.

In the meantime, the process for getting this information to the RPS is as follows:

All RP14As should be submitted as usual, including information at the 12-week average rate of pay.
Once practitioners have submitted the RP14A the RPS will email a separate spreadsheet to complete with the 52-week average rate of pay for the holiday pay calculation.
Please complete the spreadsheet and return it to the RPS within five working days.
The RPS will work with insolvency practitioners to improve this process to make it as efficient as possible whilst it is in operation.

Information received from claimants – RP1

Whilst the RPS updates its IT systems and online claim form, it will only be asking insolvency practitioners to provide the secondary rate of pay. Claimants will continue to fill in their holiday pay information on the RP1 based on 12 weeks.

The fact sheet and payment letter will make clear to the claimant that the RPS have used an alternative rate of pay to calculate their holiday pay, based on information supplied by the insolvency practitioner.

In the short term, this approach will allow the RPS to continue to process holiday pay payments quickly, and avoid claimants having to separately calculate and submit their rate of pay for holiday pay.

Frequently asked questions (FAQ’s).

How do I calculate the 52-week rate of pay?

There is guidance online to help insolvency practitioners.

What about payments made since 6 April 2020?

The RPS will be contacting insolvency practitioners for cases between 6 April and now to request 52-week rates of pay.

Any claimant who has received holiday pay already, which should have been higher, will receive a top up payment.

Overpayments will be offset where there are future claims made to the RPS.

What about holiday taken but not paid prior to the 6 April 2020 and post?

Any holiday taken but not paid prior to the 6 April 2020 will need to be calculated on the 12-week average. If on or after this date, it will need to be calculated on the revised 52-week average.

Exactly what information will you need and in what format?

Insolvency practitioners will need to provide the 52-week rate of pay in the spreadsheet. The spreadsheet will be sent to practitioners directly following the receipt of an RP14A with a holiday pay component.

What if I don’t have the 52-week information for payments made since 6 April 2020?

Where a claimant has been employed for less than 52 weeks, the reference period is shortened to the number of weeks of their employment.

The reference period must only include weeks for which the claimant was actually paid. It must not include weeks where they were not paid as they did not work. This principle has not changed under new legislation. The legislation also introduces a cap on how far back the reference period may go, which is 104 weeks. Where this gives less than 52 weeks, the reference period is shortened to that lower number of weeks.

When will practitioners be able to submit the 52-week rate via the RP14a?

Changes are underway to the IT system which are expected to be implemented in the coming months.

While average underpayments are expected to be small, the RPS has decided to introduce this interim solution and make top-up payments to those already paid in order to ensure that claimants receive their correct amount promptly.

Will claimants have to supply the 52-week data as well?

The RPS is not currently asking claimants to supply the 52-week data. Changes will be made to the RP1 application to allow claimants to provide this in future.

Guidance is being developed for claimants to help them understand the calculation for when the RPS start asking them to provide the information.

What information will practitioners give to claimants to explain how their Holiday pay was calculated?

The payment letter claimants receive to confirm what payments they will receive has been amended to notify them that the reference period for holiday pay has changed to 52 weeks.

They will be advised to speak to the insolvency practitioner in their case if they do not agree with the rate of pay applied.

How will this impact Proof of Debts?

Any affected proof of debts will be amended in due course.

Directors Using Claims Management Companies (CMC) for their redundancy claims.

The Redundancy Payments Service (RPS) receives claims from directors where assistance in completing those claim forms has been provided by a CMC. In doing so, a percentage of the amount the director receives from the National Insurance Fund is claimed by the CMC as their fee.

In the vast majority of cases there are no issues concerning directors’ claims and they are paid accordingly. The RPS also takes the view that if anyone needs advice on completion of any claim form, they can get such help, without incurring any expense, from the RPS’s gov.uk website, or from the insolvency practitioner.

Whilst there is no requirement to do so, where an insolvency practitioner is approached by a director for assistance in completing the claim form, the practitioner may refer such person to a CMC.

The office holder is responsible for validating the information provided by claimants in making any claim to the RPS (using forms RP14 and RP14A) with reference to the records of the company. To assist in this duty, an insolvency practitioner may choose to employ a CMC or other agents, or to retain payroll staff. Where an insolvency practitioner has used any agents for assistance in completing their validating information, the insolvency practitioner concerned remains responsible for the accuracy of the information provided. The insolvency practitioner should therefore take steps to ensure there are appropriate safeguards in place to confirm the accuracy and validity of all information provided.

If there is incomplete information or deficiencies in the records of the company, the insolvency practitioner should decide the level of claim that they are willing to validate, using their best judgement. In making this decision, the insolvency practitioner should consider all available means of obtaining relevant information. For example, by examining those records that do exist (including the claims made by the employees), by ensuring the directors comply with their duties to provide information or by employing or retaining specialist payroll or employment rights agents.

An insolvency practitioner should only engage CMCs, who fully comply with requirements of the CMR for assistance in performing their duties whilst also complying with section 2320 of the Code of Ethics.

An insolvency practitioner should also be able to evidence that they are satisfied that any CMC they engage complies with CMR requirements. A CMC should not act as both an agent of the insolvency practitioner and an agent of the claimant in the same case. This would present a conflict of interest within the statutory roles fulfilled by the insolvency practitioner.

The Insolvency Service will continue to report any potential CMR breaches or concerns over completed claim forms to the appropriate Recognised Professional Body for further consideration.

Code of conduct for large or high-profile cases with the Redundancy Payments Service (RPS)

On many large cases, the RPS works closely with the insolvency practitioner and together they create the initial communications for employees.

The RPS is seeking to develop a smoother working process for high profile cases (either employers who are in the public eye, or where there are expected to be 250 or more redundancies) which will benefit both parties – the RPS and the insolvency practitioner.

Large case process

For large cases, the RPS will work closely with the insolvency practitioner to follow the process below:

If the employer has not already submitted advanced notification of redundancies, the insolvency practitioner completes the HR1 form and emails it to RPS
The insolvency practitioner makes initial contact with the RPS as early as possible to request a case set up and submits a completed template for setting up a new case.
The RPS and insolvency practitioner work together to agree employee communications with standard factsheets ready for sending out for furloughed and non-furloughed employees.
The RPS sets up the case and issues the insolvency practitioner with a case reference number.
The insolvency practitioner issues a factsheet from the RPS, with an information pack (if applicable), to the employees.
The RPS inspects the employer’s payroll records and may agree to pay off the RP14A.
If there are any significant changes on the case, such as further rounds of insolvencies, practitioners should contact RPS with details.

Following this process will enable the RPS to make payments quickly, and accurately, and ensures that employees receive good quality communications throughout.

To help this procedure run smoothly, these notes set out below:

The importance of getting in touch with the RPS as early as possible.
What information the RPS need at the first point of contact.
What happens after insolvency practitioners contact the RPS.
What is meant by paying off the RP14A.

Getting in touch earlier

The RPS does not share commercially sensitive information (other than with other government departments for the purpose of supporting employees).

By getting in touch with the RPS before insolvency practitioners are formally appointed, the RPS can prepare to conduct an inspection and for processing claims.

Where needed, the RPS can also prepare a bespoke factsheet and employee communications in collaboration with practitioners, ready to be given to employees as soon as possible after dismissal. Bespoke factsheets can include information specific to that case in order to help reduce contact and questions from employees.

These ensure the information given to employees is accurate and has been agreed by both the insolvency practitioner and the RPS.

Making initial contact: what the RPS needs to know from the IP.

Separate to insolvency practitioner obligations under Advanced Notification of Redundancies (ANR), the RPS also asks that practitioners send the following information as early on in the appointment process as possible by filling out a template for setting up a new high-profile case.

The template requires information about:

The industry sector.
The employer’s name.
Whether staff are based in England, Wales, Scotland or a combination
If the HR and payroll staff are being retained.
When the insolvency practitioner expects to be appointed.
The total number of employees working for the company.
The total number of employees being dismissed and how many are currently furloughed.
Whether the employer is planning to continue trading some or all the business.
If the employer is planning to sell some or all the business.
Whether we should expect to be paying all components for all employees, or if some are not applicable or have been paid.
Any complicated areas ie employees with multiple rates of pay, bonuses or commission.
Contact details for directing employee queries (ie any specialist webpages or email addresses that have been set up).
If there is any media or political interest.

What is the next step

Once the RPS receives the case set up template, an RPS inspector will contact the insolvency practitioner to discuss what communications are needed and if a bespoke or standard factsheet is most appropriate.

The RPS can also work with the practitioners to review any communications that have been drafted for employees by themselves or by the insolvent employer.

The RPS will then issue a CN number for each employer and the agreed factsheet(s). It is important that practitioners give the correct CN number and factsheet to each employee, as claims against the wrong case lead to delays and complications.

Going forward, the RPS will not set up cases or issue case reference numbers before this stage in the process. This is in order to limit:

Employee confusion and claims being put in before the employees understand the situation.
Claims being withdrawn and amended – creating additional rework and contact for the RPS and insolvency practitioners.
Employees receiving overpayments.
Significant delays in employees receiving the correct payments while we wait for payroll information.
Employees contacting the press, their MPs and the insolvency practitioners with questions and asking to update and amend their claims.

Once redundancies have been made, an RPS inspector will visit the premises and inspect payroll records or may do so remotely. The purpose of the inspection is to see if the RPS can pay off the RP14A rather than adopting RPS’s usual stance of using the lower figure of the RP14A or the RP1. Paying off the RP14A enables bulk (quick) processing of payments, using the RP14A information that the insolvency practitioner has established is accurate.

Paying from the RP14A

If RPS agrees to pay off the RP14A this means:

Redundancy pay

Only paid if claimed by claimant.
Years of service per RP14A.
Age per RP14A.
Rate of pay per RP14A.
Date of dismissal per RP14A.
Please confirm separately if any employees resigned, as the RP14A does not enable practitioners to inform the RPS that an employee is not entitled to a redundancy payment.

Arrears of pay

Only paid if claimed by claimant.
Rate of pay per RP14A.
Period of arrears per RP14A.

Holiday pay accrued

Only paid if claimed by claimant.
Rate of pay per RP14A.
Number of days (annual allowance, carry over, taken, leave year start date) – lower of RP1 & RP14A.

Holiday pay taken

Only paid if claimed by claimant.
Rate of pay per RP14A.
Number of days taken – lower of RP1 & RP14A.

Compensation in lieu of notice

Only paid if claimed by claimant – RP2 required (not just ticking RP1 box).
Rate of pay per RP14A.
Years of service per RP14A.
Date of dismissal per RP14A.
Date of notice per RP14A.
Benefits/ notional benefits per RP2.

Once the RPS begin making payments, the inspector and stakeholder relationship manager will keep in touch about any developments on the case and any case decisions that could have an impact on insolvency practitioners.

Suspicious or fraudulent redundancy payment claims – A reminder of an IP’s responsibilities

Given recent media reports highlighting suspected fraudulent activity across a range of government support schemes and services, Insolvency Practitioners are reminded to be vigilant of potential abuses including in relation to redundancy payments claims.

The Redundancy Payments Service (RPS) regularly reviews areas that could be vulnerable to fraudulent claims and Insolvency Practitioners have a role alongside the RPS in helping to prevent fraud occurring.

Through accepting appointments and completing the RP14/14A forms, Insolvency Practitioners provide the RPS with details of the employees’ claims which they should have verified against the supporting evidence from the employers’ records which is relied on to make payments.

Insolvency Practitioners are reminded of the need to assess the risks associated with anti-money laundering requirements (AML) and to avoid entering into arrangements which facilitate fraudulent claims. Customer Due Diligence checks, including identification and verification procedures, should be carried out when considering taking an insolvency appointment. To further comply with anti-money laundering (AML) requirements, where an Insolvency Practitioner is aware, or has suspicions, of any criminal activity resulting in an entity being in possession of proceeds of crime, they should submit a Suspicious Activity Report (SAR). Insolvency Practitioners should refer to guidance on SAR reporting procedures issued by their Recognised Professional Body, in addition to guidance provided by the National Crime Agency.

Where an Insolvency Practitioner intends to deal with the assets of, or make any payments from, an entity which they suspect includes proceeds of crime, they should also consider whether they should submit a Defence Against Money Laundering SAR to the National Crime Agency to obtain consent to proceed with the transaction. Insolvency Practitioners should refer to guidance on AML procedures, also issued by their Recognised Professional Body.

When approached to act in a case and it appears sums are due to employees, Insolvency Practitioners should be mindful of any indicators which suggest that the company’s formal insolvency may be being used to perpetrate fraudulent redundancy payment claims. Indicators may include, but are not limited to:

insolvency proceedings being commenced within 2 years of incorporation, where the company has seemingly not been active for a significant period and/or there is little evidence of recent trading activity or having no or minimal assets;
Relevant records, bank account activity and RTI information not accurately matching the actual number of employees or periods employed as stated in the RP14A; or
company creditors being listed as solely or predominantly the directors and/or other employees.

When completing the RP14A, Insolvency Practitioners should be mindful of:

the potential creation of fictitious employee details (possibly using identities stolen from genuine individuals);
Cases where the company has been trading for less than two years and claims are for employees that, according to the company’s records or directors, are owed the maximum amounts in respect of arrears of pay or holiday pay;
inflated rates of pay which are not supported by the wages records;
employees whose RP14A entry cannot be completed due to incomplete or missing records. Where there is insufficient evidence in the records, IPs should not use the RP1 data to complete the RP14A entry without contacting RPS first to discuss. In the absence of that discussion RPS will assume that there is evidence in the records to substantiate the RP14A; and
claims from foreign workers who are working illegally.

In submitting information to the RPS, particularly forms RP14/14A, Insolvency Practitioners are providing details required by law, under sections 169 or 190 of the Employment Rights Act 1996.

The wording of the declaration on the RP14/14A requires an Insolvency Practitioner to provide the information correct to the best of their knowledge. In support of this, the Insolvency Practitioner Upload Service is being revised to remind practitioners of their obligations. Any false statement made knowingly or recklessly in providing details of employee claims, or the falsification of any document, may amount to a criminal offence.

Insolvency Practitioners are reminded that they should make an assessment on a case-by-case basis to decide what reasonable checks are necessary to verify information or identities before submitting the RP14/14A to the RPS. Any changes in circumstances or information already provided to the RPS should be included in a new RP14/14A.

Where a case or claim is suspected to be fraudulent, it will be rejected and the RPS will carry out an investigation, including an inspection of the wage records held by the Insolvency Practitioner. The Insolvency Service will take action against any person involved in any fraudulent claims, including any Insolvency Practitioner identified as being complicit in any fraud. In cases where an Insolvency Practitioner is found to have acted negligently or unprofessionally, the matter will be referred to the Practitioner’s authorising body.

The new RP14A form to be used from 19 February 2021

Background

In Dear IP 107, the Redundancy Payments Service (RPS) wrote about a legislative change in the reference period for holiday pay claims.

On 6 April 2020, the reference period for holiday pay changed from 12 weeks to 52 weeks. This reference period change applies to all employees with variable pay. The change is intended to provide additional protection to employees, particularly those with seasonal variations in pay.

Since the Dear IP, RPS has had an interim process in place whilst it updated the software to allow for a second rate of pay for employees.

IP’s are advised that some technical changes will be made to the RP14A and IP Upload Service during the evening of 18 February.

What RPS is doing

RPS is adding new elements to the RP14A, to allow you to provide a different rate of pay for holiday pay on the RP14A. IP’s will then be able to upload this through IP Upload Service.

The updated form is now available to download and will need to be used for RP14As submitted from 19 February.

After this date, previous versions of the RP14A will not be accepted. Any RP14As you need to submit on 18 February should be uploaded by 6pm.

The RPS is working with software providers Turnkey and VisionBlue/Aryza so they can integrate a cut over to the new RP14A form.

Changes to the RP14A form

If IP’s use RPS’ RP14A template, there are new fields to complete so that IP’s can provide the additional holiday pay information.

These are:

Weekly pay (52-week reference period) – must be populated if the claimant is on a variable rate and claiming holiday pay
Reason for not providing 52-week rate – must be populated from the drop down if 17c is left blank
Status of 52-week rate of pay for past holiday periods – must be populated from drop down to confirm the status of holiday pay taken but not paid

The RPS has added additional validation into the form to present additional messages if there is an error in the form.

The RPS is also updating the redundancy payment letter to help claimants understand their holiday payment.

Changes to IP software (Turnkey and VisionBlue/Aryza) to create RP14As

The RPS has been working with Turnkey and VisionBlue/Aryza and they have updated their systems to allow you to provide the additional holiday pay information through their software.

What RPS is doing next

Now that the IP Upload Service process has been updated for the new holiday process, the RPS is looking at the claimant side of the process, including amending its online claim form (RP1) to allow claimants to also provide their 52-week average.

The RPS will provide further updates in due course around these changes.

Case set up form change

The RPS recently updated its form for requesting a new case be set up. From 1 March RPS will no longer accept previous versions of the form.

RPS update: From 12 April, claimants will be able to provide their 52-week average rate of pay for holiday pay when they submit their claim

From 12 April, RPS claimants with variable pay will be asked to calculate their 52-week average rate of pay and include it in their claim for redundancy related payments.

When completing the form, claimants will have the option to defer to the information provided in the RP14A if they cannot provide the information themselves.

Background

In Dear IP 121, RPS wrote to IP’s to confirm that you can now upload RP14As including the 52-week rate of pay for holiday pay through the IP Upload Service.

Since then, RPS has been updating the claimant facing guidance and online form for applying for redundancy related payments (known as the RP1).

Changes to the RP1 form

From 12 April 2021, claimants will be asked additional questions about their rate of pay for holiday pay if they say they are not on a fixed income.

Claimants will be asked to provide their 52-week average or opt to defer to the information provided by IPs in the RP14A. RPS has built in this option due to the inherent complexities of the calculation.

Some other sections on the form will also be updated in response to user feedback. This includes, improving the guidance, including where we ask claimants to provide their email address.

Claimants will be able to submit details of how much holiday they have remaining in either hours or days (currently they can only provide the information in days).

If they provide the information in hours, the form will convert this into days for them.

Claimants will be able to see both the number of hours they inputted and the number of days this equates to on the summary page for that section of the form.

Payment letter

RPS has also made improvements to the content of the payment letter to make it more user friendly. This includes changes around signposting and clear explanations of the different payment components.

Increased holiday pay carry-over

To ensure businesses have the flexibility they need to respond to the coronavirus pandemic, and to protect workers from losing their statutory holiday entitlement, the Working Time (Coronavirus) (Amendment) Regulations 2020 was introduced. This enables workers to carry holiday forward where the impact of coronavirus means that it has not been reasonably practicable to take it in the leave year to which it relates.

Guidance has been provided to assist employers in identifying when increased holiday carry-over could be appropriate.

The guidance focuses on businesses that have seen their workloads increase as a result of the pandemic, and that have therefore not been able to allow workers to take their holiday entitlement. The key consideration is whether it was not reasonably practicable for a worker to take annual leave as a result of Covid-19.

Various factors should be considered such as:

whether the business has faced an increase in demand due to Covid-19 that would reasonably require the worker to continue to be at work and cannot be met through alternative practical measures
the extent to which the business’ workforce is disrupted by the Covid-19 and the practical options available to the business to provide temporary cover of essential activities
the health of the worker and whether they need to take a period of rest and relaxation

The above list is not exhaustive.

Furloughed employees are expected and encouraged to continue to take their holiday. As mentioned in a previous Dear IP, employees taking holiday during the furlough period must have received their normal contractual rate of pay (ie 80% from Govt plus 20% from employer).

In determining whether employees who have been furloughed are entitled to carry-over increased holiday, Insolvency Practitioners must be satisfied the employer either prevented or refused leave as a result of Covid-19 measures or for some other direct impact of Covid-19.

Where an employee was furloughed and received an 80% payment for holiday pay, but the employer has not paid the 20% shortfall, the Redundancy Payments Service (RPS) will accept the employee will have a shortfall of 1/5th of their entitlement remaining unpaid. This shortfall can be expressed on the RP14A as an increase in holiday days accrued. Where this has occurred, it is recommended that this is communicated to the claimant(s) so they can adjust their claim.

It is the responsibility of the Insolvency Practitioner to decide whether they feel the circumstances meet the above criteria, as this will not be a decision made by RPS. If the Insolvency Practitioner agrees they meet the criteria, then the uploading of the RP14a will be treated by the RPS as confirmation of their acceptance of the debt.

RPS will pay the lower figure from the RP1 & RP14a. If the claimants have any queries regarding pro-rata holiday calculation based on the information supplied on their RP1 claim, it will be a matter for the Insolvency Practitioner to decide on whether they will need to provide guidance to the claimant.

CFS Redundancy Payments Ltd is authorised and regulated by the Financial Conduct Authority to process directors redundancy claims arising from company liquidations. Please contact us today on 0161 533 0232 or email [email protected]

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Call us at any time on 0161 533 0232 and let us help you with your directors redundancy claim. Your call will be answered 24/7 in the UK.

Can I claim director redundancy pay if my company was in a CVA before liquidation?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK, at any time of day.

What would prevent a director redundancy claim being approved?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK, 24/7.

How is director redundancy pay worked out?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim.

What is Transfer of Undertakings Protection of Employment (TUPE)?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK, 24/7.

Can directors who were paid less than minimum wage claim director redundancy pay?

If a director has been taking a regular salary through the PAYE system, regardless of the amount, they will typically be entitled to claim director redundancy pay. When a company is going through financial hardships, more often than not, the directors of the company will do everything within their power to increase the business’ fortunes. This will be by implementing cost cutting measures, wherever possible. Typically the first areas to be cut is the salary of the directors. This is an area that can be cut as minimum wage legislation does not apply to directors of limited companies; therefore, they are free to pay themselves as little as they choose.

If you have informed your liquidator that you have been paying yourself a salary that falls below the National Minimum Wage (NMW) or National Living Wage (NLW), they may take the information given and submit a confirmation of your claim using these figures, this will leave you with a pay-out which is under-valued. However, what your liquidator may not know is that everyone (including directors of limited companies) is eligible to claim redundancy based on the NMW (or NLW for over 25 years of age) regardless of the salary that has actually been taken.

To make sure your liquidator is maximising your director redundancy claim, you need to know exactly how much you could possibly be entitled to. You can do this by contacting CFS Redundancy Payments Ltd, who will be able to help and assess your position and quantify the value of any possible director redundancy claim. You will then be able to use this figure and compare this against what your insolvency practitioner is forecasting you will receive.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK, night and day.

Who can help me with my directors redundancy claim?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

So, please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK at any time, day or night.

Do I need a contract of employment to be able to make a claim director redundancy?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK, 24/7.

Where does the money for director redundancy claims get paid from?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK at any time.

Can I make a director redundancy claim if I was paid at less than national minimum wage?

Here at CFS Redundancy Payments Ltd, we shall continue to process directors redundancy claims at not less than the national minimum wage on the RP1 form which we submit online to RPS.

The online RP14A form contains the following employee information.

Employee name

CHAMP case reference number (CN)

Employee full name

Date of birth

NI number

NI class

Employment start date

Date notice given

Employment end date

Basic weekly pay

Day of week paid

Owed wages from date(s)

Owed wages to date(s)

Amount(s) of owed wages

Holiday year start date

Number of days holidays owed

Weekly pay (52 week reference period – see notes below for full explanation)

RPS will process the claims based on Basic weekly rate on the RP14A on the assumption that the IP has factored in the claimant’s hours worked per week when assessing the Basic weekly rate based on the evidence available to them. If the rate is below NMW then RPS will advise the claimant and the IP and it will be left to the IP to consider agreeing the uplift. So, in summary, the uplift to NMW will no longer be automatic.

From our discussions with RPS, we understand that they are hoping to be able to amend the information required on the RP14A, to include the number of hours worked per week by the claimant.

In addition to the RP14A, the IP must complete an RP14 form which is information on the insolvent company itself and must include the following information.

Company name

CHAMP case reference number (CN)

Company number

Date of incorporation

Company address

Company PAYE reference

Company directors’ details

Company shareholders details

Details of any associated companies

Did the above take on any employees from the insolvent company?

Number of employees made redundant by the insolvent company

Are any of the above claiming TUPE from a previous business?

Details of any previous business mentioned above

Should TUPE claims be accepted?

Were employees entitled to carry forward unused holidays?

Date of company insolvency

Has there been a transfer of the business?

Details of whom business was transferred to

Date of business transfer

Date the negotiations began

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

So, please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are personally answered in the UK at any time 24/7.

Will a director redundancy claims have a bad effect on the liquidation for me?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. Or email us for more information at [email protected]

Can I lodge a director’s redundancy claim if my company goes into Administration?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. All calls are answered 24/7 in the UK.

Will starting another job affect my claim for directors redundancy pay?

Call CFS Redundancy Payments Ltd today on 0161 533 0232 and we can help you to maximise your director redundancy claim and your other statutory entitlements.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

How long after the liquidation process can I make a claim for director redundancy pay?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

So, contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim.

Will a director have a director redundancy claim against their own limited company?

Put simply, YES they will, so long as they were on the payroll and paid regular wages or a salary by the company. The answer is also yes, you can, if you were the only director of the limited company and still yes you can, even if you were the sole shareholder in the company. A lot of directors whose companies are facing financial uncertainty are unaware of this.

As well as being on the payroll you also must:

Work at least 16 hours a week
Work for at least two years under a formal contract of employment
Not be a non-executive director acting only in an advisory capacity
Be owed money by the company

Please click on this link to access our free to use directors redundancy calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd can guide you through the whole process. Call us today on 0161 533 0232 to start your director redundancy claim.

Can all company director claim for redundancy pay?

Every company director can claim for director redundancy pay and other statutory entitlements when their limited company enters into insolvency provided that they were genuine company employees.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle claims involving employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

So, contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim.

How can a company director claim for director redundancy pay?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to process director redundancy claim and all other claims involving employment related matters. Our authorisation number is 830857.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact us today by calling 0161 533 0232 and let us help you with your directors redundancy claim.

Who can help me settle my personal guarantees?

Call us at any time on 0161 533 0232 and let us help you with your personal guarantee. Your call will be answered 24/7 in the UK.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Can I use my director redundancy claim to settle personal guarantees?

Call us today on 0161 533 0232 and let us help you with your directors redundancy claim.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Can a company director be made personally bankrupt for business debts?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle claims involving employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

So, contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your directors redundancy claim. All calls are answered 24/7 in the UK.

Can directors claim for director redundancy pay if they were paid less than national minimum wage?

The answer is YES THEY CAN! Many company directors pay themselves less than NMW as part of their tax planning strategy. Provided directors sign a declaration form confirming they were paid less than NMW, RPS are currently paying director redundancy claims at not less than NMW which can mean vastly enhanced director redundancy claims for many directors.

If you qualify for director redundancy pay your payment will be based on the salary you have been earning in the months leading up to your company’s liquidation, up to a maximum weekly gross amount of £571. However, where do you stand if you have been paying yourself substantially less than this, maybe even less than the minimum wage?

Put simply, for the purposes of claiming director redundancy pay, this does not matter. It is generally understood that when a company is struggling under the weight of increasing financial pressures, directors often put money-saving measures in place to try and improve the company’s financial position and in a lot of cases the first thing to be cut is the salary the director pays him or herself. Unfortunately, this can mean the director is receiving a salary at a lower level than the national minimum wage.

The important thing to remember, however, is that the Redundancy Payments Service (RPS) cannot base a redundancy claim on any amount which is lower than the national minimum wage and therefore this is the figure which will be used in any calculations even if your actual salary falls short of this level, provided they receive a signed directors declaration form back from the director in respect of their application for a directors redundancy payment.

But you must have been paying yourself something in order to qualify for director redundancy pay, and this must have been done through the company payroll. If you are unsure whether you have been paying yourself this way, then it is always a good idea to speak to your accountant who will be able to confirm this for you.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please phone CFS Redundancy Payments Ltd today on 0161 533 0232 for free and let us help you with your directors redundancy claim.

Can a director claim for director redundancy pay in a compulsory liquidation?

Please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 and let us help you with your directors redundancy claim.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle directors redundancy claims and other employment related matters.

Can every company director claim for director redundancy pay?

Are there any requirements other than being on the payroll must be met to claim for director redundancy, you may ask? You need to have:

Worked under a formal employment contract for a minimum of two continuous years
Worked for at least 16 hours per week
Not been a non-executive director acting simply in an advisory capacity
Be actually owed money by the company in terms of unpaid wages etc

Please click on this link to access our free to use director redundancy calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims.

Call us 24/7 on 0161 533 0232 and let us deal with your directors redundancy claim.

Can a company director claim for director redundancy without an employment contract?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by the Financial Conduct Authority to handle claims involving employment related matters.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

So, contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your directors redundancy claim.

How much will my director redundancy claim be worth?

Please click on this link to access our free to use director redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Currently, the maximum amount of a director’s total claim is £29.007.

This is made up of the following separate claims.

Directors Redundancy Pay – a maximum of 30 week’s pay, always tax free.

Directors Unpaid Wages – up to 8 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Holiday Pay – up to 6 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Notice Pay – a maximum of 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working in a new job.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims.

Please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 and let us help you with your directors redundancy claim.

Can directors claim for holiday pay owed as well as directors redundancy pay?

Please click on this link to access our free to use director redundancy claim calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Call us 24/7 on 0161 533 0232 and let us help you with your directors redundancy claim. Your call will be answered in person by one of our UK based advisors.

Can all company directors claim for directors redundancy pay?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

For more information, please call us on 0161 533 0232 or email [email protected]

Can a director make a claim for unpaid wages as well as for directors redundancy pay?

We are a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered 24/7 by one of our UK based advisors.

Can all directors claim directors redundancy pay?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total director redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact us today by calling 0161 533 0232 and let us help you with your claim.

Could company directors be made redundant when they were on furlough?

If this happened to you then please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your director redundancy claim.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

How long does it take for director redundancy claims to be paid out?

Please click on this link to access our free to use director redundancy claim calculator to see how much your total directors redundancy claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Call us at any time on 0161 533 0232 and let us deal with your claim.

Can a company director claim for notice pay on top of director redundancy pay?

You don’t have to worry about keeping track of when your notice period ends. We will do this for you and then contact you when the application can be made.

Everyone’s notice period is different, dependent on their length of service so don’t worry if we contact some of the former directors before we contact you.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims.

Call CFS Redundancy Payments Ltd today on 0161 533 0232 and we can help with all parts of your directors redundancy claim.

Can company directors claim directors redundancy pay if their company went into liquidation more than 6 months ago?

They can claim directors redundancy pay so long as they notified the company as their employer, or the liquidator, of their intention to claim director redundancy pay at any time during that 6 month period. Quite often directors are able to find an email or note they sent to one of their co directors or the company accountant or the liquidator, stating that they are planning on claiming director redundancy pay at the appropriate juncture once the liquidation process has started.

Please click on this link to access our free to use director redundancy claim calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact us now to start your claim. Call us today on 0161 533 0232. All calls are personally answered in the UK at any time, day & night.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims.

Can company directors carry forward unused holiday to the next year?

(3) A worker’s leave year, for the purposes of the regulations, begins:

(a) on such date during the calendar year as may be provided for in a relevant agreement; or

(b) where there are no provisions of a relevant agreement which apply:

(i) if the worker’s employment began before 1st October 1998, on that date and each subsequent anniversary of that date; or

(ii) if the worker’s employment begins after 1st October 1998, on the date on which that employment begins and each subsequent anniversary of that date.

Please click on this link to access our free to use director redundancy claim calculator to see how much your total directors redundancy claim could be worth.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Call us 24/7 on 0161 533 0232 and let us help you with your directors redundancy claim. Your call will be answered in person by one of our UK based advisors.

Can I make a claim for directors redundancy pay based on dividends?

So, what requirements other than being on the payroll must be met to claim for director redundancy pay? You need to have:-

Worked under a formal contract of employment for a minimum of two continuous years
Worked for at least 16 hours per week
Not been a non-executive director acting simply in an advisory capacity
Actually been owed money by the company

Please click on this link to access our free to use director redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a regulated claims management company authorised by FCA to handle claims involving employment related matters.

Call us at any time on 0161 533 0232 and let us deal with your claim. All calls are answered in the UK at any time, day or night.

Can I claim for director redundancy pay if my company goes into Administration?

Please click on this link to access our free to use director redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. All calls are answered 24/7 in the UK. Or email us for more information at [email protected]

Can I claim director redundancy if my company was in a CVA before liquidation?

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. All calls are answered 24/7.

How is director redundancy pay worked out?

Please click on this link to access our free to use director redundancy payment calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. Or email us for more information at [email protected]

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

What is the Transfer of Undertakings Protection of Employment Act (TUPE)?

These regulations also apply to company directors who may be seeking to claim for directors redundancy pay.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. All calls are answered 24/7 in the UK. Or email us for more information at [email protected]

Can a company director who was paid less than minimum wage apply for a directors redundancy claim?

As long as company directors have been taking a salary through the PAYE system, regardless of the amount, they will typically be entitled to make a directors redundancy claim. When a company is experiencing financial difficulties, the directors will usually do everything within their power to try and improve the fortunes of the business. This means implementing cost-cutting measures wherever possible. Usually, one of the first areas to be cut is the salary that directors pay themselves. This is an area that can be cut as minimum wage legislation does not apply to directors of limited companies; consequently, they are free to pay themselves as little as they choose.

If you have told your appointed liquidator that you have been paying yourself an amount which falls below the National Minimum Wage (NMW) or National Living Wage (NLW), they may simply take this information at face value and submit confirmation of your claim using these figures leaving you with a pay-out which is massively undervalued. However, what your liquidator may not know is that everyone (including directors of limited companies) is eligible to claim redundancy or director redundancy based on the NMW (or NLW for those aged over 25) regardless of the level of salary which has actually been taken.

In order to make sure your liquidator is maximising your directors redundancy claim, you first need to know exactly how much you are entitled to. You can do this by contacting CFS Redundancy Payments Ltd who will assess your position and quantify the value of any potential claim. You can then use this figure to compare against what your insolvency practitioner is forecasting you will receive.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Speak to CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. All calls are answered 24/7 in the UK. Or email us for more information at [email protected]

What if my company is bust but I cannot afford to pay an insolvency practitioner?

If your company has insufficient assets and your personal finances cannot stretch to funding the cost of the liquidation, there may be another way of raising the money.

As well as claiming for director redundancy you may also be entitled to receive additional compensation for unpaid holidays, notice pay, and unpaid wages.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Phone us today at CFS Redundancy Payments on 0161 533 0232 and let us help you with your claim. All calls are answered 24/7 in the UK. Or email us for more information at [email protected]

Do I need an employment contract with my own limited company?

Please click on this link to access our free to use director redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Please phone CFS Redundancy Payments today on 0161 533 0232 and let us help you with your directors redundancy claim. All calls are answered 24/7 in the UK.

Who is liable for the debts of a limited company?

If you as a company director are also an employee of the limited company, then you may be entitled to claim for director redundancy pay.

Please click on this link to access our free to use director redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Phone CFS Redundancy Payments today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are answered 24/7 in the UK.

Or email us for more information at [email protected]

Who can you help me with Personal Guarantees after the liquidation?

If you as a company director are also an employee of the limited company, then you may be entitled to claim for director redundancy pay.

Please click on this link to access our free to use director redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Phone CFS Redundancy Payments today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are answered 24/7 in the UK.

Or email us for more information at info@cfsredundancypayments

How do I pay off Personal Guarantees?

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Phone CFS Redundancy Payments today on 0161 533 0232 and let us help you with your director redundancy claim. All calls are answered 24/7 in the UK.

How do I make my claim for director redundancy pay and other benefits?

Claims for director redundancy and other statutory payments should usually be made to RPS within six months of the liquidation, although this can be extended to 12 months in certain circumstances.

Please click on this link to access our free to use director redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Please phone CFS Redundancy Payments today on 0161 533 0232 and let us help you with your claim. Or email us for more information at [email protected]

Can directors be made redundant?

A director can be made redundant so long as they were on the company payroll just like the workers and staff were.

The selection and dismissal process applied must be the same one that would be followed if any other position was being made redundant.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

If you are considering director redundancy, then please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 and let us help you with your claim.

What can be included in a director redundancy claim?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 and let us help you with your claim.

When would a company director not be entitled to claim redundancy pay?

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Please click on this link to access our free to use director redundancy calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Am I eligible for a directors redundancy claim?

Yes, you will be eligible to make a directors redundancy claim so long as you were on the payroll and paid regular wages or a salary by the company. The answer is also yes, of course you can, if you were the only director of the limited company and still yes, you can, even if you were the sole 100% shareholder in the company.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and all other employment related matters.

Contact CFS Redundancy Payments Ltd today on 0161 533 0232 for more information.

Can directors of limited companies make themselves redundant?

Even the sole director of a limited company can make themselves redundant so long as they were on the company payroll and therefore they could be classed as an employee. The selection and dismissal process applied must be the same one that would be followed for any other employee being made redundant by the company.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and all other employment related matters.

If you are considering director redundancy, then please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 and let us help you with your director redundancy claim.

When can I make a directors redundancy claim?

Your director redundancy claim needs to be submitted to the Redundancy Payments Service within 6 months of the redundancy occurring. In some circumstances this can be extended to 12 months.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and other employment related matters.

Call us at any time on 0161 533 0232 and let us help you with your directors redundancy claim. Your call will be answered 24/7.

What is the maximum director redundancy claim available?

Currently, the maximum amount of a director’s total claim is £27,635.

This is made up of the following separate claims.

Redundancy pay – 30 week’s pay always tax free.

Unpaid wages – 8 week’s pay, subject to tax at 20% if you are aged over 65.

Holiday pay – 6 week’s pay, subject to tax at 20% if you are aged over 65.

Notice pay – 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working.

Please click on this link to access our free to use director redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and all other employment related matters.

Please contact CFS Redundancy Payments Ltd today by calling us on freephone 0161 533 0232 and let us help you submit your director redundancy claim. All calls are answered 24/7 in the UK.

What happens to my benefits and other income during my notice period?

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and all other employment related matters.

Please contact CFS Redundancy Payments Ltd today on freephone 0161 533 0232 and let us help you with your director redundancy claim. All calls are answered 24/7 in the UK.

Can company directors be made redundant?

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and all other employment related matters.

Please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 and let us help you with your director redundancy claim.

Do I need to have an employment contract with my own limited company?

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and all other employment related matters.

For further details, please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232

Can I claim director redundancy if I cannot afford to pay for a liquidation?

In such a situation, you need to know that your director redundancy claim is correctly paid out and is for the maximum entitlements available to you.

Please click on this link to access our free to use directors redundancy claim calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims and all other employment related matters.

Contact CFS Redundancy Payments Ltd today on freephone 0161 533 0232 for more information and guidance on how we can help you to submit your directors redundancy claim. Calls are answered 24/7 in the UK.

How much is my director redundancy claim?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Currently, the maximum amount of a director’s total claim is £27,635.

This is made up of the following separate claims.

Directors Redundancy Pay – a maximum of 30 week’s pay, always tax free.

Directors Unpaid Wages – up to 8 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Holiday Pay – up to 6 week’s pay, subject to tax at 20% if you are aged over 65.

Directors Notice Pay – a maximum of 12 week’s pay, subject to tax at 20%, and no statutory deductions if you are aged over 66 and not working in a new job.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims.

Please contact CFS Redundancy Payments Ltd today by calling 0161 533 0232 and let us help you with your claim.

Can directors claim for holiday pay owed?

We can help directors to submit a claim as soon as their company goes into liquidation or administration. We can deal with all parts of your claim from beginning to end, so don’t worry.

Please click on this link to access our free to use director redundancy calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle claims involving employment related matters.

Call us 24/7 on 0161 533 0232 and let us help you with your claim. Your call will be answered in person by one of our advisors.

Can all directors claim directors redundancy pay?

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

For more information, please call us on 0161 533 0232 or email [email protected]

When can a director make a claim for unpaid wages?

We are a claims management company authorised and regulated by the Financial Conduct Authority to handle director redundancy claims.

Call us at any time on 0161 533 0232 and let us help you with your claim. Your call will be answered 24/7 by one of our advisors.

Can all directors get directors redundancy pay?

Company directors can claim for directors redundancy pay, unpaid wages, holiday pay and notice pay in the event that their limited company enters into insolvency provided that they were paid a regular wage or salary through the company payroll. Many years ago this was a little known fact. It was widely believed that company directors were unable to claim directors redundancy pay and other statutory entitlements from the Redundancy Payments Service (RPS) because it was usually their actions or inactions which had led to the company’s insolvency and the resultant liquidation. It was also a no go where the company director was also a 100% shareholder and hence owner of the company.

CFS Redundancy Payments Ltd is here to help all company directors to maximise their directors redundancy claims and other employment claims for statutory entitlements. In some circumstances, company directors can use their redundancy monies to pay the liquidation fees or to re-start the business with assets they are able to buy back from the liquidator.

Please click on this link to access our free to use directors redundancy pay calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

Please contact us today by calling 0161 533 0232 and let us help you with your claim.

Can directors be made redundant when they were on furlough?

If you were in this position then please contact CFS Redundancy Payments Ltd today on 0161 533 0232 and let us help you with your claim.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims.

How long does the company director redundancy claim process take?

Please click on this link to access our free to use director redundancy calculator to see how much your total claim could be for.

https://www.cfsredundancypayments.co.uk/redundancy-calculator/

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle director redundancy claims and other employment related matters.

Call us at any time on 0161 533 0232 and let us deal with your claim.

Can a company director claim notice pay?

You don’t have to worry about keeping track of when your notice period ends. We will do this for you and then contact you when the application can be made.

Everyone’s notice period is different, dependent on their length of service so don’t worry if we contact some of the former directors before we contact you.

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims.

Call CFS Redundancy Payments Ltd today on 0161 533 0232 and we can help with your claim.

Can company directors still claim directors redundancy pay if the company went into liquidation more than 6 months ago?

So, contact us straight away to start your claim. Call us today on 0161 533 0232

CFS Redundancy Payments Ltd is a claims management company authorised and regulated by FCA to handle directors redundancy claims.

Can company directors carry forward unused holiday?