Contractor - Redundancy?

[powelly]

As a ltd company contractor am I allowed to be made redundant from my own ltd company? My current contract looks as though it could be terminated early due to the current cuts, which is fair enough. Can I make myself redundant though and receive the usual tax free redundancy payment?

[powelly]

Yes. Trying to work out logically if legal and beneficial.

[powelly]

wow busy day! Thought this topic might have been dead. So am a Director and an employee, in essence the only employee, contracted to an agency that contracts to the client, legit outside of IR35. So the original thought was could I legitimately make myself redundant as the contract had been cancelled as it may be a while before I get another placement and it could be tax efficient for me personally not to have my ltd. company sat there until the next thing comes along.

Of course, I'm not considering leaving the contract market, but when times are 'sticky' was wondering if there was a clever 'tactical' way through it all that was within the legal system.

[powelly]

Du1point8 said:

but you are not being made redundant, you are the owner of the Ltd.

The Ltd lost a contract, not you...

yes, but as the director of the ltd company can I make my only employee redundant?

[powelly]

Ah because I guess in my mind the two are separate, but clearly not.
Why did I think that? Because as the only employee I can of course work for other companies as an employee as well.

[powelly]

fergywales said:

The issue is that your question in your OP is another example of what is destroying this country financially. Someone wanting a hand out from a government pot that is not only empty, but £Billions overstretched.

Now don't get me started on putting into a pot all of my life as I have strong worth ethics, living a healthy lifestyle so I don't call on the medical profession, staying within the law so I don't call on the services, and only being eligible for £64 per week for 6 months..... when millions never do a days work in their life.... please don't. I pay my dues, as does my company. It was just a simply factual question, to which I think I have the answer.

[powelly]

fergywales said:

Have some self respect. I am sure you have availed yourself of the benefits of operating under a limited company. Your self righteous justification is frankly pathetic considering your question and reasoning.

That just about closes this topic for me. Thanks.