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

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

Comments

  • Pennywise
    Pennywise Posts: 13,468
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    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.
  • 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.
    :jTo be Young AGAIN!!!!...what a wonderfull thought!!!!!:rolleyes:
  • antrobus
    antrobus Posts: 17,386 Forumite
    ...

    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"?
  • 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.
    :jTo be Young AGAIN!!!!...what a wonderfull thought!!!!!:rolleyes:
  • antrobus
    antrobus Posts: 17,386 Forumite
    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"?
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