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bigduckontax
bigduckontax, Accountant
Category: Tax
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The same client of mine now asking me for redundancy pay, he

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Hi Sir, the same client of mine now asking me for redundancy pay, he wants to give redundancy to his wife and mother,am not asking about statutory pay, am asking can the company pay redundancy pay for his wife which she is been working for me for 2 years, and his mother for 1 year. any amount below the £30k

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Are they working under a contract of employment?

Customer: replied 1 year ago.
they are but nothing is mentioned about redundancy, payslip is issued each month through the payroll.

To be entitled to redundancy pay the recipient must have at least two years continuous service so only the wife might be entitled.

Customer: replied 1 year ago.
okay under the statutory pay the wife is entitled to less than 500 , but can he give her a bigger amount ie £30k at tax free.
Customer: replied 1 year ago.
if her contract says that she will be paid up to £30k redundancy. will she be entitled to it with any tax issues.
Customer: replied 1 year ago.
withdraw my last question, am sure her contact does not say any thing about redundancy
Customer: replied 1 year ago.
i forgot to mention that the wife is a shareholder, so will she be still entitled

The first 30K of a redundancy payment is tax free. The amount of redundancy pay is determined by her employer.

Customer: replied 1 year ago.
okay many thanks, ***** ***** i mentioned before she is a shareholder in the company will she still be entitled to the redundancy

Unless it is precluded by the Articles, most unlikely, yes.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you

Delighted to have been of assistance.

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