# Self Employed - entitled to redundancy?



## mik_da_man (19 Jan 2010)

Hi,
I have a Ltd company of which I am a Director and the sole employee, business has been quite slow lately and my last contract finished up in Nov.
I now have secured a PAYE job in a firm on a 18mth fixed term contract, I will be resigning as an employee of my Ltd company and am wondering if I'm entitled to redundancy as I wasn't paying class A PRSI?


----------



## Welfarite (19 Jan 2010)

See[broken link removed]. You would have to be paying Class A.


----------



## mik_da_man (19 Jan 2010)

Yeah - Had noticed that all right...
So basically there't no entitlement for me as I set up my own company and went out and got work for myself


----------



## mathepac (19 Jan 2010)

mik_da_man said:


> ... So basically there't no entitlement for me as I set up my own company and went out and got work for myself


Yes, basically the information about the upsides and downsides of setting up and running your own business was available to you in advance, and like you and others are discovering, it's not all upside.


----------



## jack2009 (19 Jan 2010)

I assume the company has funds to pay you a redundancy package?  If this is the case and you no longer require the company wind it up as a members voluntary liquidation and then have the funds distributed to you by way of a capital distribution.  This means you only pay CGT not income tax creating a saving of 20%


----------



## mik_da_man (19 Jan 2010)

mathepac said:


> Yes, basically the information about the upsides and downsides of setting up and running your own business was available to you in advance, and like you and others are discovering, it's not all upside.


no need for that attitude!
jack - thanks for the info


----------



## z107 (19 Jan 2010)

> Yes, basically the information about the upsides and downsides of setting up and running your own business was available to you in advance, and like you and others are discovering, it's not all upside.


Must have missed the upside.
The downsides are numerous.


----------



## sinbadsailor (22 Jan 2010)

Being in a similar sitaution with slowed income and finding that since I tried to create a company and build a different lifestyle other than a 9-5 employee for myself, the tax system in Ireland neither respects nor helps you in any way. Unless of course you become a bigger company with lots of '9-5 employees' that is.

Having talked to many of my friends regarding life-work balance, work satisfaction, which is abysmal in Ireland from what I gather, they would love to forge their own path, but now the perils of trying to do so are well known and they dont dare rock the boat. And that is a sad state for a growing services country like Ireland, nurture and assist should be at the core of the tax system for new entrepreneurs, not stamp and kill.

If they actually thought about it would benefit the country much more in the long run.

But back to point...redundancy is fast becoming extinct. Even big banks are starting the fixed term contract stuff, all very sad.


----------



## Liquidator (12 Mar 2010)

You would be entitled to redundancy if the company were liquidated.  You would need to file an rp50 form along with an EIP1 for any arears of wages.  Your Liquidator would be able to advise you on this...


----------



## jack2009 (12 Mar 2010)

Liquidator said:


> You would be entitled to redundancy if the company were liquidated. You would need to file an rp50 form along with an EIP1 for any arears of wages. Your Liquidator would be able to advise you on this...


 

The OP would not be entitled to redundancy and the RP50 would be rejected by scope ad OP did not pay class A PRSI!


----------

