Redundancy for Directors

[Liamos]

Where a director retires from a company, is he entitled to compensation for loss of office? And if so, is it the same calculation as for an employee ie €10160 plus €765 for each year of service? Finally, can he also use the top slicing relief calculation?

 

[jack2009]

Is the director being made redundant or retiring? Are they a shareholder?

 

[Liamos]

The director is a shareholder and is closing down the company.

 

[jack2009]

You had best talk to an insolvency pracitioner/tax consultant, if closing down the company then it is possible that winding up the company by way of MVL will reduce tax to 25% and also certain payments may be tax free by making use of retirement relief etc.