Company Dissolution, Liquidation, and Director Redundancy: How it Works

JohnChew

This infographic explains how the redundancy process works when a director is making a claim during liquidation: https://www.redundancyclaim.co.uk/liquidation/company-dissolution-liquidation-and-director-redundancy-how-it-works

Pennywise

Yes, but the director needs a contract of employment which most won't have because they'll have chosen & benefitted from paying themselves a low salary and high dividends to avoid NIC over many years.

Pennysmakepounds

Pennywise wrote: »

Yes, but the director needs a contract of employment which most won't have because they'll have chosen & benefitted from paying themselves a low salary and high dividends to avoid NIC over many years.

I kind of agree with this, most LTD company directors will take dividends rather than a high salary to maximise income.


But when it comes to closing a business and who gets what. It also depends on the type of business. There is a huge difference between a director of a corner shop and a director of a consultancy type of business.


Having said all that, the new tax on Dividends these days is a real death stroke to the above directors taking the dividends over PAYE. Its 7% these days I think from what I read.

antrobus

Pennysmakepounds wrote: »

...

But when it comes to closing a business and who gets what. It also depends on the type of business. There is a huge difference between a director of a corner shop and a director of a consultancy type of business.

.

In what way is there a "huge difference"?

Pennysmakepounds

antrobus wrote: »

In what way is there a "huge difference"?

I was referring to the difference in Assets and Creditors in the two types of business.

antrobus

Pennysmakepounds wrote: »

I was referring to the difference in Assets and Creditors in the two types of business.

What difference in Assets and Creditors? How do you know there is this "huge difference"?