Reply to: Paying Wife Redundancy

[Paralytic]

I've posted once on this thread saying that the wife did about 1 hours work a month and that was 6 pages and 3 days ago.

He was referring to your NLUK account

[eek]

But he's not redundant since he made the decision to close...

Oh never mind, like eek said, it doesn't matter a damn anyway.

I've posted once on this thread saying that the wife did about 1 hours work a month and that was 6 pages and 3 days ago.

[northernladuk]

Oh never mind, like eek said, it doesn't matter a damn anyway.

[malvolio]

except it wan't like that.
The business was closing, so he was redundant. No director needed for a closed company. The post ceased to exist.

But he's not redundant since he made the decision to close...

Oh never mind, like eek said, it doesn't matter a damn anyway.

[northernladuk]

Who cares? Its a none story that doesn't make sense and doesn't help this situation.

Why are we still discussing it?

[Lance]

I agree. Or a bloody poor accountant. A director cannot make himself redundant, only appoint a new one to replace himself. Posts are made redundant, not people, and the post has to persist; it's the law...

except it wan't like that.
The business was closing, so he was redundant. No director needed for a closed company. The post ceased to exist.

[WTFH]

The question posed here was can I employ my wife as an employee (not director) and then make her redundant. Nothing to do with making the director redundant

Not quite.

He says he's already given her a P45. That means she was employed, but no longer is.

[NowPermOutsideUK]

I agree. Or a bloody poor accountant. A director cannot make himself redundant, only appoint a new one to replace himself. Posts are made redundant, not people, and the post has to persist; it's the law...

The question posed here was can I employ my wife as an employee (not director) and then make her redundant. Nothing to do with making the director redundant

[malvolio]

He 'retired' but made himself redundant? Sounds more like a 'mate's polished turd bulltulip story.

I agree. Or a bloody poor accountant. A director cannot make himself redundant, only appoint a new one to replace himself. Posts are made redundant, not people, and the post has to persist; it's the law...

[TheDogsNads]

at risk of confusing the thread....

a pal of mine retired 3 years ago.
He took all the money out his company, made himself redundant after there was no money left, and got the government to pay statutory redundancy to him personally as the company couldn't afford to.
Legal. yes.
He got a lawyer to sort it.

Risks... unknown as he's the only case I've heard of.

He 'retired' but made himself redundant? Sounds more like a 'mate's polished turd bulltulip story.

[Lance]

Seems like an unnecessary and difficult task

Assuming they where under 41, had worked for their company for 10 years and paid in line with usual contractor rates the maximum stat redundancy is £5k; I'd be surprised if that covered the solicitor fees

The solicitor charged £2k. So £3k of free money.

More to the point - how does an officer of the company, which is a substantive position defined in the Companies Act, make themselves redundant? Simply not possible.

Well he did. And he did get paid. No idea of the legality or the risks but he did it.

[malvolio]

Seems like an unnecessary and difficult task

Assuming they where under 41, had worked for their company for 10 years and paid in line with usual contractor rates the maximum stat redundancy is £5k; I'd be surprised if that covered the solicitor fees

More to the point - how does an officer of the company, which is a substantive position defined in the Companies Act, make themselves redundant? Simply not possible.

[oilboil]

at risk of confusing the thread....

a pal of mine retired 3 years ago.
He took all the money out his company, made himself redundant after there was no money left, and got the government to pay statutory redundancy to him personally as the company couldn't afford to.
Legal. yes.
He got a lawyer to sort it.

Risks... unknown as he's the only case I've heard of.

Seems like an unnecessary and difficult task

Assuming they where under 41, had worked for their company for 10 years and paid in line with usual contractor rates the maximum stat redundancy is £5k; I'd be surprised if that covered the solicitor fees

[oilboil]

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 ?

Whilst I broadly agree with the other comments about creative accounting and playing fast and loose with tax rules, isn't this all actually irrelevant given the statement "hence provided her a P45"

You can't make someone redundant after they have already left employment. You needed to sort this out before issuing the P45.

She possibly could have an employment tribunal claim against the OP for wrongful termination though - depends if she like you or not!

[Scruff]

Anything is "possible"...

It's your money, and it's your risk.

IANYA.