Redundancy Question?

**FrontEnder** · 8 February 2016, 14:27

This sounds incredibly dodgy.

**northernladuk** · 8 February 2016, 14:30

It sounds down right stupid.

**pr1** · 8 February 2016, 14:32

haha, good luck

**SimonMac** · 8 February 2016, 14:37

Originally posted by Blakes03 View Post

I have been employing my misses from the Ltd. She has no other paid job. She is only working a few hours a week to look after my Ltd company’s home office. A bit of filing and keeping the office tidy etc. She is very good and gets well paid for this if I am honest, however I am now sadly considering making her redundant which under her terms would be a very generous pay off. £30,000. It would appear that if someone is made redundant, the first £30,000 is tax free. Before I run this by my accountant, has anyone ever done this before? 03

OK, lets give you the benefit of the doubt.

If you genuinely have a reason to make her redundant IE the role she does is no longer required by the company then yes you can make her
redundant, however the activities you mention " A bit of filing and keeping the office tidy etc" will still be required, so unless you are taking these on yourself you cannot make her redundant.

The next red flag is "She is very good and gets well paid for this if I am honest" well paid for general office tasks? or well paid compared to a brain surgeon? If the former how do you get to the £30,000, if the latter she is not paid reflective of the role she does so HMRC will be keen to talk to you.

If however you are divorcing from your wife and need to get rid of her you are shafted, you can't make someone redundant without good reason, you can try sacking her but that would be unfair dismissal and your company would be taken to the cleaners as well as you personally from the divorce.

If you are just looking at a way to get £30,000 out of the company and think this is a good idea, well lets be thankful this isn't general.

But I could be wrong

**FrontEnder** · 8 February 2016, 14:37

Right at the top of the geovernment advice webpage:

For a redundancy to be genuine, you must demonstrate that the employee’s job will no longer exist.

I'd say your plan fails right off the bat there. I'm guessing you will still need to do the jobs your wife currently. does.

**northernladuk** · 8 February 2016, 14:39

Has she been employed for more than two years and does she have an open ended signed contract of employment?

You are not making her redundant, you are making her position redundant.

**TheFaQQer** · 8 February 2016, 14:44

Has she been working under an employment contract for at least two years continuous employment? Can you prove that the job is no longer there - will there be no filing any more? Will the office never be tidied any more? What alternative roles are you going to try to find for her, which you need to do?

Sounds like an attempt to try to avoid paying tax to me, but good luck - you may get away with it.

**LondonManc** · 8 February 2016, 14:46

Lube is tax-deductible. HTHBIDI

**Blakes03** · 8 February 2016, 14:47

Yeah – it is her position being made redundant, she initially took it badly, but hey it happens, she’ll get over it and I’ll have to do the job myself, cost cutting an all that. With her redundancy payoff from my company she is going to be getting a new kitchen and whatever we (sorry she!) has left, will be buying me a Rolex Submariner for my birthday, so it’s not all bad news, silver lining and all that!

Redundancy Question?