Director Redundancy Claims
Anderson Brookes Insolvency Practitioners help directors close limited companies with debt quickly, legally and with expert guidance every step of the way.
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Why Directors Choose Anderson Brookes
With more than 25 years’ experience and thousands of directors helped, we’re trusted by business owners across the UK. You can speak directly with an expert insolvency practitioner and we’ll help you understand your options clearly and quickly. We specialise in working with small and medium businesses and we understand your perspective and priorities.
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What Limited Company Directors Need to Know
When a limited company becomes insolvent and enters liquidation, directors often believe their role ends there. But what many directors don’t realise is that they may be legally entitled to a redundancy payment. If you’ve been actively working in your company and taking a salary through PAYE, you could be owed thousands of pounds – and Anderson Brookes is here to help you claim it.
When Can I Claim Director Redundancy?
You can only submit a claim after the company enters formal liquidation through a CVL. As your insolvency practitioner, Anderson Brookes will notify the Insolvency Service and support your claim with all required documentation.
Once submitted, most claims are processed by the Redundancy Payments Service within 3 to 6 weeks.
What is Director Redundancy?
Director redundancy is a statutory right for limited company directors who have worked in the business in an employee-like role. If the company enters insolvent liquidation (usually through a Creditors’ Voluntary Liquidation or CVL), you may be entitled to claim redundancy and other employment-related payments.
These include:
Redundancy pay (based on age, length of service and weekly wage)
Notice pay (up to 6 weeks)
Unpaid wages (up to 8 weeks)
Accrued holiday pay
All payments are made by the UK Government’s Redundancy Payments Service (RPS), not your insolvent company.
Am I Eligible to Claim Redundancy as a Director?
To qualify, you must meet the following conditions:
The company must be insolvent and entering liquidation
You must have worked for the company for 2 years or more
You must have been paid a regular salary via PAYE (not just dividends)
You must have worked at least 16 hours per week in a genuine, active role (such as managing operations, administration, or staff)
There must be evidence of an employment relationship (contract of employment, payslips, job duties)
You can be a sole director or one of several – redundancy applies as long as these criteria are met.
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How Much Redundancy Pay Could I Receive?
Redundancy pay for directors is calculated just like it is for employees, using your age, length of service, and weekly wage (capped at £643 per week in 2025). You may also be entitled to additional payments.
Example Calculations:
Director aged 42 with 8 years of service, earning £600 per week:
Redundancy pay: £7,200
Notice pay (6 weeks): £3,600
Unpaid wages and holiday pay: variable
Total potential claim: £10,000+
Director aged 35 with 3 years of service, earning £400 per week:
Redundancy pay: £1,200
Notice pay: £2,400
Additional entitlements may apply
Do I Need a Claims Company?
No. Many directors are wrongly told to use a third-party claims management company that charges a percentage fee. This is unnecessary.
When you appoint Anderson Brookes to liquidate your company, we include full director redundancy support at no extra cost. We handle everything in-house – no commissions, no outsourcing.
Can IR35 Contractors Claim Redundancy?
Yes – if you’ve operated through a limited company and meet the eligibility criteria above, you may qualify. The key requirement is that your role was regular, hands-on, and you were paid via PAYE.
Why Many Directors Miss Out
Most directors miss out on redundancy because:
They don’t know it exists
They assume they don’t qualify as they own the company
Their accountant didn’t put them on PAYE
They used dividends only, rather than salary
Even if your situation is unclear, we’ll assess your eligibility in full. You may still qualify based on a history of PAYE, even if your recent pay was irregular.
Why Choose Anderson Brookes
We specialise in SME liquidations and director support
Liquidation completed in 8 days
No third-party claims firms or hidden commission
Expert help with redundancy, notice pay and more
Over a decade of experience helping UK directors close their company the right way
Get Free Advice Today
If your company can’t continue and you want to understand your options, speak to us today. We’ll explain the liquidation process, help protect your position, and ensure you claim everything you’re entitled to as a director.
📞 Call 0808 253 9847 for free, confidential advice
Or contact us here to start the process.
