Redundancy - Company Director

Hi

My husband and I own a small company, which we now find we have to close. He takes a salary and pays PRSI etc. I have worked free of charge for years. The company is in operation for 8 years.

There are two employees besides himself, who will get redundancy. Can he pay himself redundancy ?

I'd appreciate any views

Leonie

No.
I tried it for a business partner and the accountant says that he has to return the money to the company as you can not make yourself redundant.

Hi Leonie

I don't know about redundancy, but the company can pay him a termination payment which can be tax free. It is a good way of taking money out of the company and certainly more efficient than salary. There is a key post on this subject somewhere on Askaboutmoney

Brendan

As a company owner/director you are classed as being self employed (generally PRSI class S1) rather than an employee of the company. So I doubt it but an accountant, tax advisor, or a call to the revenue will give you the definitive answer.

No a company director can not be paid redundancy - more specifically if you pay S class PRSI then you can not get redunancy....

Brendan - if you have any specific info about termination payments for company directors I'd be very interested.