Employed to self employed

[Lilhen2t]

I am currently going through the process of changing the structure of my business, I have offered the 2 staff members I have had for 5 years on a full time basis the opportunity to get their foot firmly on the self employed ladder by rent out a space from me? my question is do I need to make them redundant and pay out redundancy? I have budgeted for this

 

[salonfrog]

If the 2 staff want to become self employed, they resign and then sign a rental contract with you. You issue a p45 to them. No redundancy required if they are willing to leave their employment.