Liquidation is a hugely common process with thousands of companies closing each and every year due to financial problems. For company directors this can be a very stressful and unfortunate time with their business collapsing around them, creditors chasing for payment and being faced with significant fees to liquidate the business even though the company bank balance is in the red.
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Thankfully, many directors are now realising that they have statutory entitlements upon liquidation just like their employees and these entitlements include director redundancy pay for which the average compensation pay-out is £12,000.
Essentially, many company directors can now fund their liquidation with this redundancy pay. It may sound too good to be true but we help dozens of company directors every single day to unlock their right to redundancy and achieve a cash windfall at the time when they need it most.
How does it work?
We speak to directors every single day who tell us their company is in dire straits and liquidation is the only option but they can’t afford the insolvency practitioner fees which tend to be around £5,000. Thankfully, they’ve contacted us at just the right time; we can quickly ascertain their right to a director redundancy claim and if they are eligible, they are only around six weeks away from receiving a substantial redundancy pay-out.
Not all company directors can claim redundancy but most can. As a quick rule of thumb, directors have a high possibility of a valid claim if the following statements are true:
- You are paid via PAYE or have been in the past
- Your company has been incorporated for at least two years
- Your company has traded in the last 12 months
- Your company was insolvent at the time of liquidation or is currently insolvent
FREE expert advice
If you are unsure whether you have a right to claim director redundancy, you can contact us for a free consultation and our dedicated team will be able to make a judgement based on your current situation.
We have vast experience in advising on redundancy and statutory entitlements in addition to more than 30 years’ insolvency and employment law experience. Not only can we assist company directors pre and post insolvency, we can also assess the impact on your staff and provide advice on TUPE in administration procedures if necessary.
Our experience immediately reduces the possibility of rejection – around 50% of director redundancy claims are rejected by the Redundancy Payments’ Service due to errors or inconsistencies. We understand how to maximise your claim and how to ensure the claim form is completed correctly.
Contact UK Liquidators today to see if you qualify for FREE LIQUIDATION through director redundancy.