Hi all,
My situation:
LTD director owning 51% of shares.
employee of the above LTD earning £10 000 per year.
The LTD lost the biggest client hence huge part of the turnover and I might be forced to close it down before and of the LTD's tax year (Nov 2015).
I am thinking to made myself redundant and pay myself redundancy pay of less than £30 000.
Questons:
1. Is the pay expense of the LD? I.e. save on corp tax?
2. Do I have to pay personal income tax on the redundancy payment?
3. Can this be done and will it attract interest from tax man? I.e. effectively I will stop being employed but still a director of the LTD.
4. If business picks up in future can I re-employ myself in the LTD in say different position (by name)?
5. Any suggestions
My situation:
LTD director owning 51% of shares.
employee of the above LTD earning £10 000 per year.
The LTD lost the biggest client hence huge part of the turnover and I might be forced to close it down before and of the LTD's tax year (Nov 2015).
I am thinking to made myself redundant and pay myself redundancy pay of less than £30 000.
Questons:
1. Is the pay expense of the LD? I.e. save on corp tax?
2. Do I have to pay personal income tax on the redundancy payment?
3. Can this be done and will it attract interest from tax man? I.e. effectively I will stop being employed but still a director of the LTD.
4. If business picks up in future can I re-employ myself in the LTD in say different position (by name)?
5. Any suggestions
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