Redundancy Question?

[Blakes03]

Yeah it is an 'enhanced' redundancy package, but guess I’ll have to wait another year before sadly letting her go. Would like to consider a compromise agreement but my misses does not compromise.

[SimonMac]

Yeah it is an 'enhanced' redundancy package, but guess I’ll have to wait another year before sadly letting her go. Would like to consider a compromise agreement but my misses does not compromise.

I will book mark this thread for a years time to point to HMRC to help you out

[Blakes03]

Thanks for that Simon, reckon they could help, I mean redundancy can be a difficult for some and I can't see the misses taking it too well, but hey hoy think of the money!

[OwlHoot]

I have been employing my misses from the Ltd. She has no other paid job. She is only working a few hours a week to look after my Ltd company’s home office. A bit of filing and keeping the office tidy etc. She is very good and gets well paid for this if I am honest, however I am now sadly considering making her redundant which under her terms would be a very generous pay off. £30,000. It would appear that if someone is made redundant, the first £30,000 is tax free. Before I run this by my accountant, has anyone ever done this before? 03

Kudos to you Blakey - I like the way you think!

(Not sure if HMR&C will share that opinion - But, heck, who cares if it is technically within the rules? )

[meridian]

Has she been working under an employment contract for at least two years continuous employment? Can you prove that the job is no longer there - will there be no filing any more? Will the office never be tidied any more? What alternative roles are you going to try to find for her, which you need to do?

Sounds like an attempt to try to avoid paying tax to me, but good luck - you may get away with it.

Re "the job is no longer there", the government already does a laughable job at enforcing any of this. I know plenty of people whose roles are still being done but now out of Bangalore, they were made redundant. My wife's been made redundant three times, each time because the business no longer wanted to pay her for what she was doing, and her tasks were divvied up among everyone else; statutory minimum redundancy each time.

[stek]

Re "the job is no longer there", the government already does a laughable job at enforcing any of this. I know plenty of people whose roles are still being done but now out of Bangalore, they were made redundant. My wife's been made redundant three times, each time because the business no longer wanted to pay her for what she was doing, and her tasks were divvied up among everyone else; statutory minimum redundancy each time.

Same thing happened to Keenan when Brent was made redundant.

[Blakes03]

Kudos to you Blakey - I like the way you think!

(Not sure if HMR&C will share that opinion - But, heck, who cares if it is technically within the rules? )

Thank you Hoot, I'll give it a go!

It would appear that I have to wait another year before sadly laying her off. Don’t know how I came up with the ‘Enhanced’ redundancy package of 30K but it appears this is also the max allowed tax free for redundancy. Not planning on breaking any rules or anything but if this is the figure and rules then I for one want to remain in them. Don’t want to take the p1ss or anything, this is a serious matter for my misses, she will not take it well at all, its just that I need to apply some cut backs and her position has to go. I will have to tidy the office myself, bl00dy cut backs!!