Redundancy from Ltd company - i am the director

I currently have an audit exemption from revenue, would I still need a statutory audit if the company is dormant or if i wind it up?

Just to let you all know I contacted revenue and they emailed me back the following:

"As you paying PAYE and PRSI you are entitled to pay yourself a redundancy payment. You can leave your company as dormant, which means its not exactly ceased trading but we will not be looking for returns and we'll review the situation again in a couple of years. If you could just let us know what date the company will stop trading we can proceed with updating our records. If you require any further information please do not hesitate to contact us."

I asked the followed question in reply:
Thank you for your reply. One follow up question - if I pay myself redundancy will it be treated like a regular redundancy payment and therefore not be subject to tax if it comes within the rates for redundancy payments as outlined in revenuue leaflet " IT 21 - Lump Sum Payments on Redundancy/Retirement" or will I have to pay PAYE and PRSI on the total amount?

Regards​

South County Customer Services "
​

ok this is the bit that i dont understand..

You are making your self redundant but at the same time continuing to be a director of the company. That makes no sence at all to me. The Ltd Company is a seperate Legal entity and it appoints you according to its Memo & Arts. Legally you are an "employee" of the company in the position as director even if you are not being paid. And if you seek redundancy surely you must also be ending your position as director??? And if you are a shareholder of this company you must then appoint a new director in your place or you would be breaking the companies acts regarding the "2 director rule" and would therefore lose your limited liability until the company appoints a replacement director.

RonanC said:

Legally you are an "employee" of the company in the position as director

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I don't think so. You can be a director of a company without being an employee - I know plenty of contractors whose mother or brother, etc. are directors but obviously not employed by the company.

Regarding the information from Revenue: they might not need accounts from a dormant company but the CRO do. Any accountant will charge a few hundred euro to do that each year. I reckon you're better off just winding it up.

wowser said:

I know plenty of contractors whose mother or brother, etc. are directors but obviously not employed by the company.

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but most of these dont even know their responsibilities as a director.

the primary function of a director is to manage the company on behalf of the members (shareholders)

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RonanC said:

but most of these dont even know their responsibilities as a director.

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Whatever about their responsibliities they're not considered employees as far as the Revenue are concerned. I'm a director of my apartment's management company but I'm definitely not an employee.

I'm resurrecting an oldish thread here, but it seems to me that it was more or less left hanging and the original question applies exactly to my situation (so I'd love to know the answer!)

So, if it is possible to move from contracting (as a director+employee of own Limited Company) to other PAYE employment while still keeping your own company dormant, then

1. You give notification but no further payments to Revenue, and annual accounts plus payment to CRO - is this correct?
2. Is it possible to make yourself redundant from your own company (which is remaining dormant, however) and get a *tax-free* redundancy payment?

Homeowner, any update on your adventures in this area would be very welcome

Thanks all

N.

Can a director who is one of four directors but is also an employee get redundancy?