I recently made an employee redundant. We were having cash flow issues and the aforementioned employee agreed to take redundancy. At the same time I agreed to sell the business to a competitor. At the 11th hour, the deal fell apart. I have since secured further funding and am re employing the redundant employee. How does that affect his tax-free redundancy pay, which was paid before the deal to sell fell apart and before further funding was secured to help with the cash flow? Is there a time lag before he can be re employed? Could he become self-employed and work for me that way?