Director / Shareholding question. (old rules)

borders_dude

My case is under old rules.

Im the NRP.

If I was to be the sole shareholder of a limited company, and be a director of the company, how would this affect my assessment.

This would be whilst fully employed by my current employer.

I would not be taking any kind of wage from the new business.

Presumably this would affect my assessment until I received some kind of dividend payment or wages.

Is that correct?

Kimitatsu

You cant be the sole shareholder of a limited company - to have a limited company you have to have a director and a secretary, it has to be two different people.

If you are currently fully employed and will be setting up as a director of another company, the CSA could put in an interim maintenance amount of £30 a week until you produced your first years accounts. However if you can get yor accountant to run a projected first years costs showing that there will be no profit and no money to pay you a salary I think you can get them to award a nil assesment. Speedster is your man to ask about that as he has experience of this.

Bear in mind that if you were to pay yourself a nominal wage and draw the bulk of your pay in dividends then the PWC can ask for this to be taken into account (just for future reference )

HTH

borders_dude

Kimitatsu wrote: »

You cant be the sole shareholder of a limited company - to have a limited company you have to have a director and a secretary, it has to be two different people.

This goes against the advice from business link which is on their website:


Private companies must have at least one director, but it is not essential to have a company secretary. If there is only one director, this must be stated in the company's Articles of Association.

Kimitatsu

Yup - beg your pardon, just learnt something :rotfl:

This is from Companies house:

Private companies: The Companies Act 2006 requires a private company to have at least one director. A company’s articles of association may impose a higher minimum requirement for the number of directors. At least one director must be an individual. A private company does not need to have a secretary if a company’s articles of association provide for it to have a secretary but it must have a secretary if this requirement is included in the articles of association.

The rest of the post stands though Speedster is the man to pm about it.

borders_dude

Im glad you have admitted that the information you gave was incorrect! this highlights the point that people should not act soley on the information giving on this forum without realising the consequences of acting on the information which could be incorrect!

Kimitatsu

Then I would refer you to the header at the front page of the forum:

Remember, this is an open forum! Anyone can post so always exercise caution when acting on info.
Don't post links for personal gain. Except in the referrers section and always declare any interest.

And also to my signature which points out that any opinions are my own and not those of MSE.

borders_dude

Kimitatsu wrote: »

Then I would refer you to the header at the front page of the forum:

Remember, this is an open forum! Anyone can post so always exercise caution when acting on info.
Don't post links for personal gain. Except in the referrers section and always declare any interest.

And also to my signature which points out that any opinions are my own and not those of MSE.

Thanks, I was aware of all that, which is why I said that this experience serves to highlight matters.

borders_dude wrote: »

Im glad you have admitted that the information you gave was incorrect! this highlights the point that people should not act soley on the information giving on this forum without realising the consequences of acting on the information which could be incorrect!

CSA_Help

borders_dude wrote: »

Thanks, I was aware of all that, which is why I said that this experience serves to highlight matters.

I had a limited company (pre 2006) and it had a director and a secretary .The director was the major shareholder .

RedSky

borders_dude wrote: »

My case is under old rules.

Im the NRP.

If I was to be the sole shareholder of a limited company, and be a director of the company, how would this affect my assessment.

This would be whilst fully employed by my current employer.

I would not be taking any kind of wage from the new business.

Presumably this would affect my assessment until I received some kind of dividend payment or wages.

Is that correct?

From my recent experience, during an assessment they asked for "your accounts showing your income from the above company" when they discovered I was a director of a new company which is in addition to my normal employment.

As the company was under 6 months old all I could produce was a print out from companies house proving no accounts existed or had been filed and stated the figures for turnover and costs to date.

I also informed them that no director income had been paid and so they calculated the assessment on my employment income only. I am new rules but not aware if that would make a difference.