Your own company making you redundant?

[castoff101]

A friend of mine who is also a contractor working through his own company is getting a divorce.

He has this cunning plan of making himself redundant from his own company and claiming whatever benefits are available until the divorce is finalized. Is this possible?

Can you make yourself redundant from your own company, and presumably be employed again once the coast is clear? The company also has a reasonable retained sum in the accounts.

[xoggoth]

One can claim unemployement benefit if you cannot find any paid work, regardless of whether you still a director of a company or not. It is hardly supposed to cover sorts who deliberately don't look for work to avoid paying ex wives.

[simondolan]

And no, you can't claim the £30,000 tax free redundancy payment.

[TheMonkey]

I've just fired myself actually. No redundancy pay out but it means I don't have to do as much PAYE paperwork.

[tim123]

Can you make yourself redundant from your own company, and presumably be employed again once the coast is clear? The company also has a reasonable retained sum in the accounts.

Do you mean in order to hide the moeny from the spouse?

No it won't work.

Tim

[threaded]

1st thing to remember is the UK divorce system is designed to maximise lawyer income and has little to do with a marriage breakup.

So, it would be best if he just gave everything to his ex-wife, goes to the doctors to be signed off with depression, and went on the rock'n'roll, then a 'round the world back packing trip' (i.e. bugger off to another country to work). Otherwise he will just end up giving all the money to the lawyers involved and then owing the same money to the ex-wife.

Also if there is no money to be had then the lawyers will sort it all out rather quicker so he can get on with his life.

[TheMonkey]

Insane as it may sound, that actually makes really good sense. My parents did the divorce jig and they're still taking pot shots about cash at each other 15 years down the line.

[Andy D]

Presumably he'll still be a shareholder in the company?

Can you make yourself redundant from your own company, and presumably be employed again once the coast is clear? The company also has a reasonable retained sum in the accounts.

Presumably he'll still be a shareholder in the company which will slightly screw his plans up (particularly if he's the only one or his wife is one of the others)