Paying Wife Redundancy

[eek]

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.

So about 1 hours work a month for your typical contractor...

[Paralytic]

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.

When you say "minimum wage", do you mean the legal minimum wage, or do you mean the £8-9K up to the NI threshold?

Read the other threads on this matter; I'd say its very risk to attempt to do this, especially for the low amount you could feasible argue as valid based on her wage (assuming MW) and her tenure.

And ask your accountant - that's not just a catchphrase, but actual advice

[RajaStyle]

Fair enough, thanks all... Doesn't look like a good option.

Appreciated

[NowPermOutsideUK]

I do like the ops attempt at creative accounting

It does strike me as particularly interesting that employers up and down the company do give very generous redundancies well above the statutory minimum without anyone claiming that the employer was trying to fiddle the tax man

If anything Someone leaving a company should get minimum redundancy because he will be useless to the company in the future but that’s not what happens in practise. Someone divorcing their partner *would* try amd pay the minimum so why not the employer employee relationship

I accept that this employer is related to the company by way of spouse but I’m not convinced at all it’s a non starter

[Lance]

I do like the ops attempt at creative accounting

It does strike me as particularly interesting that employers up and down the company do give very generous redundancies well above the statutory minimum without anyone claiming that the employer was trying to fiddle the tax man

If anything Someone leaving a company should get minimum redundancy because he will be useless to the company in the future but that’s not what happens in practise. Someone divorcing their partner *would* try amd pay the minimum so why not the employer employee relationship

I accept that this employer is related to the company by way of spouse but I’m not convinced at all it’s a non starter

Really?
In a 2 exec company you can’t make the admin person redundant as the admin still needs doing.
It might be possible to make both redundant if there’s no more to be done. Just not one.

[NowPermOutsideUK]

Really?
In a 2 exec company you can’t make the admin person redundant as the admin still needs doing.
It might be possible to make both redundant if there’s no more to be done. Just not one.

Im not trying to argue but surely the director can do more admin because "business' is bad and therefore the admin staff help is really redundant....

[malvolio]

Im not trying to argue but surely the director can do more admin because "business' is bad and therefore the admin staff help is really redundant....

You make jobs redundant, not people. Giving the work to someone else invalidates the basis of redundancy pay.

[NowPermOutsideUK]

You make jobs redundant, not people. Giving the work to someone else invalidates the basis of redundancy pay.

Seriously? How many times have I been in corps where they merge division x with team y and MrBloggs has decided to leave (a nice way for saying redundant). Or the team is getting restructured ...

The work still needs to be done but by someone else and often in a cheaper location - So I m not sure I buy your argument

[BR14]

LPM as usual.

[malvolio]

Seriously? How many times have I been in corps where they merge division x with team y and MrBloggs has decided to leave (a nice way for saying redundant). Or the team is getting restructured ...

The work still needs to be done but by someone else and often in a cheaper location - So I m not sure I buy your argument

Ok. But having run redundancy programmes I'm fairly confident I know the relevant legislation. It's not about people leaving, it's about how they are compensated. And how they are taxed on their severance pay.