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Small business question
![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[Deleted User]
Posts: 0 Newbie
Hi,
Appreciate I've never had to think about this before and I feel a bit silly asking but would really like to educate myself. Are Directors not paid?
If Directors aren't paid, does it mean it is not a good sign for the viability of the company?
I am strongly thinking I've started work in a business where I am 1 of 2 Employees.
I plucked up the courage to ask when payday might fall to which a Director's response was I don't know (let me find out from the other Employee) and finally learnt my Employment contact is being written up by an accountant.
The company is LTD on companies house.
Appreciate I've never had to think about this before and I feel a bit silly asking but would really like to educate myself. Are Directors not paid?
If Directors aren't paid, does it mean it is not a good sign for the viability of the company?
I am strongly thinking I've started work in a business where I am 1 of 2 Employees.
I plucked up the courage to ask when payday might fall to which a Director's response was I don't know (let me find out from the other Employee) and finally learnt my Employment contact is being written up by an accountant.
The company is LTD on companies house.
0
Comments
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Directors are normally paid a salary, if only so that they can pay the minimum amount of National Insurance contributions to ensure they have a state pension.
If the director is not drawing out any salary, then I think the business is not profitable, or the director knows they will have no entitlement to a UK state pension for some other reason.
BTW There are no stupid questions, but there are stupid people. People who ask questions are usually not stupid.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.1 -
Directors normally will get money from the business but not necessarily on a certain date.1
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