Covid-19: Dealing with redundancies correctly:
Due to the Coronavirus pandemic, it could force companies to make redundancies. Remember that there are key steps that need to be followed as far as employment law is concerned. It is also important to treat any payments on termination of employment correctly for tax and national insurance purposes. In genuine redundancy situations the first £30,000 paid on termination of employment is tax free but many employers get this wrong.
The £30,000 includes statutory redundancy pay and any enhancement from the employer as well as continuing benefits such as private health insurance.
The excess is subject to income tax and employers national insurance. We can of course assist you with the process to ensure that the redundancy
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We offer a wide range of services which are unique to your business and we have supported clients who have been forced to make redundancies. Our team of chartered accountants have a wealth of experience in a broad range of sectors and we work hard to ensure we create smart and effective tax-efficient solutions for start-ups to optimise growth and help them succeed. If you want to learn more about how the team can help or simply want some start-up advice from a trusted accountant do hesitate to contact us. For more information please do hesitate to contact us on 0161 962 1855. Alternatively you can email us using the form below and we will contact you as soon as possible.
Our fantastic team at A&C Chartered Accountants are here to help.