Once instructed, we agree to act on your behalf in making an application to the National Insurance Fund (NIF) for director’s emoluments due to you. Although you have the right to shop around and seek further advice, and you are able to make a claim to the Redundancy Payments Service yourself without charge, if instructed by you, Redundancy Assist will assess your claim, and process its application to the Redundancy Payments Service (RPS) on your behalf.
Authorisation To Complete Redundancy Forms On Your Behalf
By agreeing to the terms of this letter, you authorise Redundancy Assist to act on your behalf in relation to your application, and to act as your agent in completing the RP1, 2 & 3 forms and filing the same with the RPS.
The level of the claim and its calculation will be agreed in advance. This information needs to be carefully read and retained prior to submission. It is important that the information you provide is correct, otherwise the application may be rejected. Redundancy Assist will assist in the calculation of the claim figures for the application, but the answers provided are your responsibility.
An Outline Of The Procedure
Based on the information you provide us, we will assess what we believe you are able to apply for from the NIF. In order to be able to make your application, you will need to place the relevant company into liquidation. Once the company has been placed into liquidation, we will submit your claim to the RPS.
Fees & Cooling Off Period
Fees are charged at 15% plus VAT of the funds received from the NIF. If no funds are received in relation to your application, no fees are payable.
Net award made by the RPS for Redundancy, Arrears of Pay and Outstanding Holiday £8,536.80
Redundancy Assist fees at 15% of the above £1,280.52
VAT at 20% £256.10
Total fees payable on net award for Redundancy Arrears of Pay and Outstanding Holiday: £1536.62
Second award made by the RPS for Loss of Notice, paid at end of notice period £2,245.20
Redundancy Assist fees at 15% of the above £336.78
VAT at 20% £67.36
Total fees payable on net award for Loss of Notice £404.14
Total awards received from the RPS £10,782.00
Total Redundancy Assist fees payable incl VAT £1940.76
You may cancel this agreement by completion and submission of the form below (by post or email), or verbally (by telephone or in person).
There is a 14 day cooling off period during which time you may cancel this agreement without incurring cost. However, if you cancel after this period, but prior to a notification of payment from the RPS, we will charge a fee based upon time spent on your case at an hourly rate of £125. In this instance, we will forward a statement of time and narrative of work completed within 14 days, along with an invoice which will be due for payment within a further 14 days. If you cancel after notification of payment from the RPS has been received, you are liable to pay 15% of the funds received as above.
To facilitate and expedite the preparation of your claim, it may be beneficial to share information relating to your employment entitlements with your former employer’s insolvency practitioner, HMRC and the RPS. To do so, we require your consent, and accordingly a consent form will be included in your engagement pack. If consent is not provided this may slow the application process.
Money Laundering Provisions
We are required by the Proceeds of Crime Act and the Money Laundering legislation to:
Maintain identification procedures for all new clients; and maintain records of identification evidence. Accordingly as part of our duties we are required to obtain certain information from you.
Photo ID (a driver’s licence or passport will suffice).
You agree that your award will be paid to a general client account in this company’s name. Upon receipt of your award, the balance (less agreed fees) will be released to you by the end of the following business day. Please note it may take a further 1 – 3 business days for the money to show in your account. The payment to you will be after deduction of our fees,
and your insolvency practitioner fees, where you have instructed us to do so.
We strive to offer a high level of service, but understand that things can go wrong. Please feel free to phone into our office and discuss your case at any time, however, in the unlikely event that you feel matters should be escalated, you can find our complaints procedure on this website.
Agreement Of Terms
Once it has been agreed, this letter will remain effective until it is replaced. Cancellation may be given in writing using the form below, or verbally. We shall be grateful if you will confirm in writing your agreement to these terms by signing and returning the enclosed copy of this letter or let us know if they are not in accordance with your understanding of our terms of engagement.
The Claims Process
|Liquidation||Your claim cannot be submitted to the RPS until your Company has been placed in liquidation.**|
|Engagement of Services||We will ask you to read, agree and electronically sign our Terms of Business and other documents included in our ‘Client Engagement Pack’. We will send a link to this pack to your email address. If you have not provided an email address, the documents will be supplied by post. However, this will lengthen the anticipated timescales provided.|
|➜ Photo ID (in accordance with our Money Laundering Provisions)|
|➜ Company Accounts to cover the last 3 years|
|➜ Company Bank Statements (at least the last 12 months of trading)|
|➜ Your last 3 years P60s**|
|➜ Payslips from your last 12 weeks of employment**|
|➜ P45 where already issued|
|➜ Your original contract of employment (if available)|
|➜ Redundancy claim letter to company|
|It is a requirement that you provide all documents, including those in electronic form, in your possession that are relevant to your redundancy claim, and which give evidence of a fact in the claim.|
|** Further information is supplied below|
|Your application cannot be submitted to the RPS until the company has been placed into liquidation. This may take around 2-3 weeks to arrange.|
|Once submitted, the Redundancy Payments Service (RPS) advises their timecale for processing applications is approximately 4-6 weeks. This may vary dependant on the complexity of the case, or during periods of high demand.|
|Once notification of the award is issued by the RPS, the funds may take a further 6-7 days to be paid into your nominated account.|
|The RPS may make the following deductions to the Gross Entitlement that they calculate before payment of the award.|
|Redundancy Pay||●||No deductions|
|Arrears of Pay||●||Tax and National Insurance|
|Holiday Pay||●||Tax and National Insurance|
|Notice Pay||●||Earnings from employment/self employment, or increase of earnings from existing employment|
|●||Income or increased income from any benefits|
|●||Notional Benefits that you were entitled to but did not claim (Jobseeker’s Allowance)|
|●||Notional Tax and National Insurance deductions|
|Deduction of tax may be made by the RPS even if you do not pay tax on your earnings. If this is the case, it is suggested that you discuss this further with HMRC to confirm if you are entitled to any rebate following your award.|
Your claim may be limited or rejected if the following apply:
|●||If you do not have an original written contract of employment, or there is insufficient evidence to support your full salary entitlement, the RPS may base your award at the National Minimum Wage. This may be an amount of £8.72 ph (if over 25 in 2020/21) per hour, (approx. £18,158.40 pa FTE)|
|●||Weekly salary entitlement is capped at a maximum of £538 (in 2020/21) per week. If your salary is in excess of this amount (approx. £27,976 pa) your award will be limited to this amount.|
|●||A maximum of 8 weeks of arrears of pay will be considered.|
|●||Holiday entitlement is limited to a maximum of 6 weeks. It is also subject to time limitations with respect of accrued holidays and the time elapsed from the end of employment to the date of liquidation.|
|●||Statutory Notice Pay is limited to a maximum of 12 weeks, based on your length of service to the Company. Loss of Notice is calculated on your weekly salary rate, less any income received during the statutory notice period.|
|Where P60s or payslips have not been issued, or are lost, we require that you request a copy of your employment history from the HMRC. Requests can be made by calling HMRC on 0300 200 3500 and providing your NI number and employer details.|
Liquidation of the Limited Company
|Liquidation and insolvency practice is a specialist area and Redundancy Assist advisors are not trained or authorised to give any professional advice in relation to this. This will be provided by the licenced insolvency practice that you choose to instruct.|
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