Ltd. Company Director - Am I Entitled to Redundancy?

N

Newera

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Hi folks,

I'm hoping that you may be able to help me. I am currently a director of a contract services Ltd company but will be closing the company via voluntary strike off. Others that I know of have availed of redundancy in similar situations but I want to be sure that this is allowable.

IT21, the revenue guidance on redundancy payments, specifically mentions directors as well as regular employees within the scope of the document and I believe that there has been legal precedent that someone employed like myself, has the same entitlements as a normal PAYE employee.

I would be grateful if those knowledgeable in the specifics of this area would advise.

Thanks very much.
 
Proprietory directors (those who would be classed as PRSI Class S) are not entitled to statutory redundancy
 
Compensation for loss of office:
http://www.revenue.ie/en/tax/it/leaflets/it21.html#section3

So the question would be can you get compensation for loss of office when you are the one sacking yourself. I've seen it where a director sells the shares and loses it position as a result but I've not seen it where the loss is a result of the company being struck off as the office does not cease until strike off.
 
Thanks very much for the replies ..... What is meant by class s and where is it stated that due to being a class s director, that you cannot avail of redundancy from the company of which you are a director?
 
The other directors could give you a redundancy package. None of it could be claimed back from the state because you pay Class S PRSI most employee pay Class A.

It problem is that you won't get the exemption from tax that applies to statutory redundancy.

The other 3 option apply to a termination payment or "redundancy"
 
Thanks Joe90, so do you mean that I could not get €10,160 plus €765 per year served, tax free due to being class s?
 
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