At a time when money is likely to be tight, a redundancy payment could be a much-needed lifeline. There are no restrictions on what director redundancy can be used for; it is your money to do as you wish.
For some, they choose to use the money to start up a new business venture, others put the money towards basic living costs while they source alternative employment. As putting a company into a voluntary liquidation process costs money, some directors find the redundancy payment useful for recouping these costs. Essentially, once the redundancy pay-out is in your bank account, it is yours to spend in the best way you see fit for your situation.
Director redundancy is similar to staff redundancy in that it provides a financial lifeline to individuals who have lost their job through no fault of their own.
In order to qualify for director redundancy, you must meet a set criteria.
The amount of redundancy you will be entitled to will be based on a variety of factors including your age, length of service, and the salary you paid yourself through the company.
At UK Liquidators, our service is fully partner-led and your case will always be overseen by a fully licensed insolvency practitioner.
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If you are considering liquidation for your company, taking expert advice at an early stage is crucial. At UK Liquidators, our team of licensed insolvency practitioners are committed to providing limited company directors with the help and advice they need to make an informed decision.
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