Originally posted by malvolio
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Redundancy payments to staff when closing one's company?
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Last edited by JohntheBike; 3 January 2020, 14:03. -
Originally posted by JohntheBike View Postso, if YourCo were not able to find a new client, what would happen then? As I said, the crux of the recent FTT case was that circumstances out of the control of the directors forced the company to close. The company can still make its employees redundant and re-employ them at such time that it gains a new contract, if ever.
The difference is between being able to find a client and being able to find business you are prepared to take on.
If the directors are convinced that they should refuse to accept or even search for certain business, then it most certainly is within their control.…Maybe we ain’t that young anymoreComment
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Originally posted by WTFH View PostThe difference is between being able to find a client and being able to find business you are prepared to take on.
If the directors are convinced that they should refuse to accept or even search for certain business, then it most certainly is within their control.If the directors are convinced that they should refuse to accept or even search for certain business, then it most certainly is within their control
the FTT case in question -
Secretary of State for Business, Innovation and Skills v Knight UKEAT/0073/13/RN
It's actually the EAT judgement, so is case law.Last edited by JohntheBike; 3 January 2020, 14:40.Comment
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Originally posted by JohntheBike View Postbut that could equally have applied in the recent FTT case. But the FTT found in favour of the appellant and allowed redundancy payments to be claimed.
the FTT case in question -
Secretary of State for Business, Innovation and Skills v Knight UKEAT/0073/13/RN
It's actually the EAT judgement, so is case law.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by northernladuk View PostThat's quite a different set up to us though. Very few of us pay that much and have contracts of employmeny so not that useful.Comment
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An FTT does not set case law or precedant. But that aside, you cant re-employ someone who you made redundant within a fairly long timescale, else their redundancy will be taxed at the higher rate.Blog? What blog...?Comment
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Interesting, if somewhat old, article by Nicola Ross-Martin on this subject: Directors: Making yourself redundant? By Nichola Ross Martin | AccountingWEBLast edited by Contractor UK; 28 June 2020, 11:30.---
Former member of IPSE.
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Many a mickle makes a muckle.
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Originally posted by malvolio View PostAn FTT does not set case law or precedant. But that aside, you cant re-employ someone who you made redundant within a fairly long timescale, else their redundancy will be taxed at the higher rate.
Can I Re-Employ Someone I Made Redundant? - The People HR Blog People HR Blog
Redundancy and re-employment waiting period - Specialist HR Solutions
In the case of contractors, if you employ your spouse and pay them a wage then you may be able to use redundancy payments to them as a way to get money out of the business tax free. A change of circumstances due to IR35 could be argued as a reasonable cause for that redundancy since with all income now going via deemed payments to the contractor there is nothing left to pay their salary.Last edited by DaveB; 3 January 2020, 15:39."Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.Comment
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Originally posted by DaveB View PostIn the case of contractors, if you employ your spouse and pay them a wage then you may be able to use redundancy payments to them as a way to get money out of the business tax free. A change of circumstances due to IR35 could be argued as a reasonable cause for that redundancy since with all income now going via deemed payments to the contractor there is nothing left to pay their salary.---
Former member of IPSE.
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Many a mickle makes a muckle.
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Originally posted by wattaj View PostThis is the tack that I'm currently exploring.Comment
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