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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 48168
Experience:  Qualified Solicitor - Please start your question with 'For Ben Jones'
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As a Director and 50% shareholder of a company I was made redundant

Resolved Question:

As a Director and 50% shareholder of a company I was made redundant on 22nd February 2013. I was paid a salary on a weekly basis, I paid NI contributions and took holidays in line with the generic Contract of Employment that all other company employees had been issued.

I worked for the Company since its instigation in 1989.

I have filled in a RP1 form and have recently received a RP 3 form to complete. Obviously I need to complete this form accurately and to my best advantage and do not want to draw the procedure out any more than necessary.

I didn't have a contract of employment as I formed the company, but as I said earlier I personally 'fell in line' with the generic ones issued to all other employees including sick pay.

Does the fact that I tookXXXXXback in 2000 implicate my claim and that I reduced my salary to an absolute minimum for a couple of years to help the company through difficult financial times when the rest of the employees did not?

I would greatly appreciate any advise that you could give me.

Regards,

Steve Day
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. Is the company insolvent?

Customer:

yes

Customer:

what happens next?

Ben Jones :

In what sense?

Customer:

sorry I thought that you had handed this across to one of your associates, please continue.

Ben Jones :

Oh no, it is only me that deals with this

Ben Jones :

Even if you did not have a formal/written contract of employment, one could certainly be implied in place, assuming you were treated as an employee and the relationship was one of employer/employee. So the lack of a written contract would not necessarily prejudice your claim.


 


The fact that you were claiming dividends would not necessarily prejudice your claim because it is possible to be an employee-shareholder and still have the same entitlements as employees, it just means that you would be taxed separately on your dividends because this would be treated as capital gains, rather than as a salary.


 


Of course you would have to be honest about your earnings from the company and if you drew any dividends in the past you would need to mention these in the form in section 9.

Customer:

tax was paid on all monies received at the time. In your opinion does the delay in claiming cause any issues/

Ben Jones :

Delay in claiming from the Insolvency Office? When did you make the claim?

Customer:

RP 1 sent 7th April 2014 as a result of information that, as a Director, a claim could not be made, recent information dictates otherwise.

Ben Jones :

No that would not affect your claim, there is no time limit to claim from the NIF

Customer:

Great news Ben. One last question. Section 1 part 4 of the RP3 asks for a written memorandum. Can't recollect one. By ticking the 'no' box for all of section 1 will it cause rejection of claim?

Ben Jones :

It would not automatically reject the claim – if there isn’t one there simply isn’t one and you must state that but it would then be a matter of establishing through other available evidence what your role was and what you may be entitled to.

Customer:

That's great Ben. What a pleasure to deal with a true professional. Take care and thanks for your help. By the way how do I print the Q & A's?

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

Customer:

thanks for that Ben. I need to send my rating.

Ben Jones :

You are most welcome, all the best

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