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What can director redundancy pay be spent on?

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Spending Director Redundancy Pay

Written by Jonathan Munnery

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.

Although nobody goes into business expecting their company to fail, UK Liquidators were supportive and helpful through the whole liquidation process, and I would have no hesitation recommending them to others in the same position.
Paul Winter
Common Liquidation Questions
What is director redundancy?

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.

Do I qualify for director redundancy?

In order to qualify for director redundancy, you must meet a set criteria.

How much redundancy could I claim?

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.

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