Small business question

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.


  • tacpot12
    tacpot12 Posts: 7,929 Forumite
    First Anniversary Name Dropper First Post
    edited 23 May 2021 at 12:53PM
    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.
  • pramsay13
    pramsay13 Posts: 1,937 Forumite
    Name Dropper First Anniversary First Post
    Directors normally will get money from the business but not necessarily on a certain date.
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