Made redundant but also a company director.

redfish0

Hello,

I, as of a few minutes ago have been made redundant. However myself and my girlfriend could see it coming and setup our own limited company.

Redundancy will need to come from the government as the company has no money. Also the limited company that my girlfriend and myself setup has not sold anything and does even not have a bank account yet, if that makes any difference.

Could someone tell me, will having a limited company make any difference to my redundancy?

Thanks.

bap98189

No it will make no difference.

redfish0

Phew. Cool, thank you :-)

Oh one more question (as you can probably tell, im a newbie to redundancy/unemployment lol). I'm due a number of weeks redundancy from the government. But what happens if I get a job before the end of those weeks redundancy pay? Does the government ask for the money back for the weeks you have your new job? Seems rather unfair if they do :-S.

Thanks.

Pete111

nope - should be all yours. The ideal situation is you finish on the friday and start the new job on the monday with the redundancy pay in your bank account

Rgs

P

redfish0

I've done some more researching and I didn't get any notice that the company was making everyone redundant. I setup my little company on the basis that I thought something was up.

Anyway I am due 9 weeks payment in leu of notice from the government, unless I magicly land myself another job, which doesnt look likely as theres very little out there :-(. Will being a director of my own little company make any difference to that instead though? Bearing in mind it has not sold anything, has no bank account, no income and I've not done any work for it.

Pete111

Sorry - struggling to see what you having a Ltd Company makes any difference. Lots of people have these (often effectively dormant as yours is) whilst working for another employer and they gain nothing from it if made redundant. The only possible angle you may have is trying to get the notice payment through the books of your new firm at a lower taxable rate...however I'm pretty sure this is suspect as it related to previous PAYE employment and if it is coming from the Govt (though I confess I don't know how that bit works) they will probably deduct at least BR tax at source anyway.

MrsFreeburn

... is your new LTD company also going to be VAT registered, just out of interest...