--- title: "Company Director Redundancy Pay Calculator & Claim Guide (2026) | CrisisCompass | CrisisCompass" source_url: "https://crisiscompass.co.uk/director-redundancy-pay-claim-guide" retrieved_by: "AnswerRail Edge Engine v1.1.0-parity-v20 (https://answerrail.com)" level_of_detail: "standard" token_payload_reduction: "92%" raw_html_bytes: 105480 compiled_body_bytes: 8432 entities_extracted: 6 currency_recall_static_html: "100%" monitored_currency_tokens: 24 faq_answer_recall_static_html: "100%" monitored_faq_answers: 2 link_recall_static_html: "100%" monitored_content_links: 13 omitted_dynamic_states: ["non_default_tab_panels", "volume_slider_tiers"] conversion_notes: "Origin renders alternate tabs and volume pricing sliders via client-side JavaScript; serving default static AST state." rfc_compliance: "RFC 9110" last_verified_at: "2026-10-25T08:49:21.660Z" cache_age_seconds: 0 origin_cache_control: "public, max-age=0, must-revalidate" --- > **Canonical Source:** [https://crisiscompass.co.uk/director-redundancy-pay-claim-guide](https://crisiscompass.co.uk/director-redundancy-pay-claim-guide) > > *Calculate your tax-free Company Director Statutory Redundancy & Notice Pay from the National Insurance Fund under Employment Rights Act 1996 s.166.* ### Organization: CrisisCompass | Field | Value | | :--- | :--- | | **Organization** | CrisisCompass | | **Official Website** | https://crisiscompass.co.uk | | **Overview** | Independent UK crisis management, financial support guidance, and emergency contingency portal. | ### Entity: CrisisCompass | Property | Detail | | :--- | :--- | | **Type** | WebSite | | **Name** | CrisisCompass | ### Frequently Asked Questions (FAQ) **Q: Is CrisisCompass free?** > A: Yes. All core tools — Survival Check, Benefits Finder, Hardship Letter Generator, Budget Calculator, Debt Priority Checker, and AI Chat — are completely free. Optional premium PDF documents start from £2.99. **Q: Is CrisisCompass financial advice?** > A: No. CrisisCompass provides general information and tools. For personalised financial advice, we recommend contacting StepChange (0800 138 1111) or Citizens Advice (0800 144 8848). **Q: Is my data safe?** > A: We store data locally in your browser wherever possible. The Financial Survival Check results are never saved to our servers. See our Privacy Policy for full details. ### Frequently Asked Questions (FAQ) **Q: Does claiming director redundancy affect my credit score?** > A: No. Claiming your statutory entitlement from the National Insurance Fund (Redundancy Payments Service) under the Employment Rights Act 1996 is a personal statutory right and has zero impact on your personal credit file. **Q: Can I claim director redundancy if I took low PAYE salary and high dividends?** > A: Yes, you can still claim based on your contractual/PAYE salary rate (or National Minimum Wage equivalent for your contracted hours where supported by your employment contract). # Can Company Directors Claim Statutory Redundancy Pay? Many UK Limited Company directors do not realise that if they have been on the company's PAYE payroll for at least 2 years and the company enters formal liquidation, they are legally entitled to claim Statutory Redundancy Pay, Notice Pay, and Holiday Pay from the government's National Insurance Fund. 2 min readLast reviewed: March 2026 [Download B2B HMRC & Director Solvency Pack (£29) →](/pricing)[Check Financial Survival Options →](/check) ## How Director Statutory Redundancy Works (Employment Rights Act 1996 s.166) When an insolvent Limited Company enters **Creditors' Voluntary Liquidation (CVL)**, employees—including working directors who hold an implied or express contract of employment—can submit **Form RP1 and Form RP2** to the Redundancy Payments Service (RPS). ### 2026 Qualification Criteria for Directors - **2+ Years Continuous Service**: Your company must have been incorporated and trading with you working as a director for at least 2 continuous years. - **Regular PAYE Salary**: You must have taken a regular salary through PAYE (even a tax-efficient salary above the Lower Earnings Limit). - **Working Hours (16+ Hours/Week)**: You worked a practical operational role (not merely a non-executive office holder). ### Typical Tax-Free Payouts (£6,000 – £16,000+) Statutory Redundancy Pay is **100% tax-free up to £30,000** and is paid directly to you personally by the Redundancy Payments Service—meaning many directors use their statutory entitlement to cover the cost of placing their company into a clean, compliant CVL. 🏢 UK Limited Company Director Triage • Finance Act 2009 s.108 & ERA 1996 s.166PAYE • VAT • Corporation Tax • Bounce Back Loans ## Running a Limited Company with HMRC Arrears or Business Debt? Calculate your monthly **HMRC Time-to-Pay (TTP)** instalment and check if you qualify for a tax-free **Company Director Statutory Redundancy & Notice Payout** from the government's National Insurance Fund (Employment Rights Act 1996 s.166) if your company ceases trading. HMRC / Company Debt£28,000 £3,000£30k Express Line£150,000+ Years as PAYE Director6 years 0 yrs2 yr Statutory Min20 yrs Weekly Gross PAYE Salary£520/wk £180/wk£700 Statutory Cap Option A: Keep Trading via HMRC Time-to-Pay ~£2,422 / month over 12 months ✓ Under £30,000 threshold: Eligible for HMRC Express Self-Serve / Direct Debit Time-to-Pay arrangement without full security. Option B: Estimated Director Redundancy Claim (Gov RPS) £6,552 Tax-Free Estimate Includes ~£3,900 statutory redundancy + ~£2,652 statutory notice pay from the National Insurance Fund (Form RP1/RP2). Often covers 100% of liquidation costs. 📄 Download B2B HMRC Time-to-Pay Proposal, Cashflow Table & s.172 Board Minute (£29 Instant Pack)🏪 Commercial Rent (CRAR) & Trade Creditor Pack (£19) Need free confidential charity guidance for a sole trader or SME? Call **Business Debtline** free on [0800 197 6026](tel:08001976026) (uk\_b2b\_corporate\_insolvency self-serve governance triage). 🏠 Ofgem ECO4 & £7,500 Boiler Upgrade Scheme (BUS) • 2026 Funding Open12 Verified UK MCS-Accredited Installers ### Cut Monthly Energy Bills by £650–£1,100/yr: Check £7,500 Heating & ECO4 Grant Eligibility If anyone in your household receives **Universal Credit, Pension Credit, PIP, Attendance Allowance, Carer's Allowance, or Council Tax Reduction** (or your household income is under £31,000 under ECO4 Flex), you may qualify for 100% funded insulation, solar, or the **£7,500 Government Boiler Upgrade Grant** with zero repayment required. ✓ £7,500 BUS Voucher✓ ECO4 Flex Low-Income Route✓ Direct MCS-Certified Assessment Check My Postcode for £7,500 / ECO4 Grants →Takes 45 seconds • No impact on credit score - **[Check Unclaimed Council Credit Balances & Band Reductions (CouncilCredit.co.uk)](https://councilcredit.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — SI 1992/613 Reg 14 • Household & CommercialSearch Ledger →UK councils hold over £310m in unrefunded credit balances from closed accounts, overpayments, and backdated Band A–H revaluations. Check if your council owes you a BACS refund. - **[Reclaim Backdated Small Business Rates Relief (RatesReclaim.co.uk)](https://ratesreclaim.co.uk?utm_source=crisiscompass&utm_medium=sovereign_hub)** — LGFA 1988 s.43(4B) • UK Shopfronts, Workshops & OfficesCheck Relief →Sole-property UK businesses with a Rateable Value ≤ £12,000 qualify for 100% Small Business Rate Relief. Audit your property or refer a local business for a £75–£150 partner referral reward. ## Frequently Asked Questions Does claiming director redundancy affect my credit score? No. Claiming your statutory entitlement from the National Insurance Fund (Redundancy Payments Service) under the Employment Rights Act 1996 is a personal statutory right and has zero impact on your personal credit file. Can I claim director redundancy if I took low PAYE salary and high dividends? Yes, you can still claim based on your contractual/PAYE salary rate (or National Minimum Wage equivalent for your contracted hours where supported by your employment contract). ## Related Guides - **[HMRC Time-to-Pay (TTP) Arrangement Guide (2026)](/hmrc-time-to-pay-arrangement-guide)** — How to negotiate a 12-month HMRC Time-to-Pay (TTP) arrangement for PAYE, VAT, Corporation Tax, or Self Assessment arrears under Finance Act 2009 s.108. - **[Corporation Tax Arrears: UK Company Director Options](/corporation-tax-arrears-company-director-help)** — Struggling to pay UK Corporation Tax? Compare HMRC Time-to-Pay arrangements, Director Loan Account rules, and Creditors' Voluntary Liquidation (CVL) options. - **[Bounce Back Loan (BBL) Arrears & Default Guide (2026)](/bounce-back-loan-default-director-help)** — Struggling to repay a Bounce Back Loan (BBL)? Learn your Pay As You Grow rights, 100% government guarantee rules, and director insolvency options. ## Sources & Further Reading [GOV.UK — Debt Management](https://www.gov.uk/options-for-paying-off-your-debts)[FCA Handbook — CONC](https://www.handbook.fca.org.uk/handbook/CONC.pdf)[National Debtline](https://www.nationaldebtline.org/) ### Get a free recovery plan by email We'll send you a personalised action plan with next steps, plus practical tips over the following week. Subscribe This page provides general information only and is not financial or legal advice. 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