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Ben Jones
Ben Jones, UK Lawyer
Category: Law
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I have been made redundant. I plan to set up as a self employed

Resolved Question:

I have been made redundant. I plan to set up as a self employed consultant. When can I go back to my previous company as a consultant
Submitted: 3 years ago.
Category: Law
Expert:  Ben Jones replied 3 years ago.

Ben Jones :

Hello, my name is XXXXX XXXXX it is my pleasure to assist you with your question today.

Ben Jones :

Why do you think there is a restriction?

Customer: The financial director is worried that the consultancy work is too similar to the employed job I had. It is not however he is worried about the tax implications as the company had tax advantages when they made me redundant. What is the safe and legal gap I need to have between the redundancy day and the day I start back as a self employed consultant
Customer: Who will deal with now
Customer: When will you be available to advise
Ben Jones :

Your rights will depend on whether the original redundancy was genuine or not. If it was, then even if you are re-employed immediately after, your redundancy payment and any benefits would not be affected:


 


http://www.hmrc.gov.uk/manuals/eimanual/eim13810.htm


 


so the time factor is not important, rather it is the reasons for the redundancy.

Customer: The original redundancy was genuine. I don t wish to be re employed. Another job was offered but it wasn't t suitable for me so I took redundant . My plan is to start up my own consultancy business and one of my customers will be my previous employer. I was made redundant on 15th jan so what date can I go back to the same company as a consultant on a part time basis
Ben Jones :

you an go back now if you really wanted to, as mentioned the time between employment is not an issue, this is not what ill be under scrutiny of that was to be challenged. Also you are not being re-employed, you r working as a consultant, someone who is not an employee and that will also work in your favour

Customer: So why is the financial director worried that if I go back too soon then they may get investigated re the redundancy situation
Ben Jones :

I don't know, you have to ask him, it could be a confusion as to the rules, i can only advise of what the law says, I can't guess why he is saying that unfortunately

Customer: What is the law in this situation . It all seems a bit vague
Ben Jones :

you can say that - this is really something that the HMRC could investigate and t would only be an issue if they find that the original redundancy was not genuine because if that was the case it would not have been a situation where tax-free payments could have been made so they could try and recover any tax due as a result

Customer: The redundancy was genuine and that job no longer exists . I was in recruitment and training which was part of the recruitment dept. this role is now part of sales. My consultancy work would be advising the sales managers on how to recruit but I will not be directly recruiting myself as I did in my previous role
Ben Jones :

I do not foresee issues in that respect - the redundancy appears to be genuine and yo are not returning as an employee

Customer: So there are no rules as per a time lapse between finishing and re starting.
Ben Jones :

Not in you case. Local government have a time limit of 30 days but that is a separate issue that also only applies if the person is re-employed as an employee, not on a self employed basis

Customer: Thank you for your help and advice. How do I save these answers to show my worried finance director
Ben Jones :

You have a few options:
a) If you see a 'share' button and hover over it you can see the option to print.
b) You could copy and paste this conversation into a Word document or equivalent. You can then save and/or print it and refer to it in the future as necessary.
c) This conversation will be stored in your account on this site so you may return to view it or do any of the above at any time

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