Paying Wife Redundancy

[RajaStyle]

Hi All

I wanted to pay my wife a redundancy payment, she is not a director but company secretary who is also a 40% odd shareholder.

If it helps FYI - With the downturn and IR35 I am looking to close down and she has recently taken perm work to help bring some income for bills etc hence provided her a P45.

Is this possible ?

[Paralytic]

Hi All

I wanted to pay my wife a redundancy payment, she is not a director but company secretary who is also a 40% odd shareholder.

If it helps FYI - With the downturn and IR35 I am looking to close down and she has recently taken perm work to help bring some income for bills etc hence provided her a P45.

Is this possible ?

What was her day-to-day role in the company (how many hours per day did she work for the company), what was her salary and how much redundancy do you want to pay her?

And if the tax man came calling, could you prove her hours?

[Lance]

Hi All

I wanted to pay my wife a redundancy payment, she is not a director but company secretary who is also a 40% odd shareholder.

If it helps FYI - With the downturn and IR35 I am looking to close down and she has recently taken perm work to help bring some income for bills etc hence provided her a P45.

Is this possible ?

is she an employee?

shareholders are not entitled to redundancy.
Nor are company secretaries.
Employees are, in certain circumstances. You do need to be very careful though. Is her role actually redundant? The role of a company secretary cannot be as the statutory responsibilities pass to the director.
If her role isn't redundant then you cannot make her redundant. Just sack her.

So if she's contractor, who cannot find work, then she may well be redundant. But that's about it.
If she's just a recipient of gifted income then she has no role therefore cannot be redundant.

[northernladuk]

Is this possible ?

No, it's not.

[TheDogsNads]

God loves a trier!

[northernladuk]

God loves a trier!

If he was trying he'd have done a search and/or asked his accountant first.

[vwdan]

I'll never understand why people want to paint a massive great target on their back.

[NotAllThere]

If it helps FYI - With the downturn and IR35 I am looking to close down and she has recently taken perm work to help bring some income for bills etc hence provided her a P45.

Is this a different company from the one you talked about closing down 2 years ago? https://www.contractoruk.com/forums/...close-ltd.html

[northernladuk]

I'll never understand why people want to paint a massive great target on their back.

Greed > all

[RajaStyle]

What was her day-to-day role in the company (how many hours per day did she work for the company), what was her salary and how much redundancy do you want to pay her?

And if the tax man came calling, could you prove her hours?

She was paid monthly effectively minimum wage but she handled all the invoicing, accounting and admin tasks. She wasn't a contractor. I guess she didn't have set hours but utilised the time she had to compete the tasks required ready for accountant.