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Should I accept Director Position..are these potential red flags?
Comments
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Thank you for everyone’s comments…if possible can we have advice about the two points I have added to the original post above please?0
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to remove herself as a director there is an online (or paper) form
https://www.gov.uk/government/publications/terminate-an-appointment-of-a-director-tm01
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WRT question 2, I'm not sure she should do anything without taking legal advice.JBEAN said:UPDATE…..thank you for everyone’s useful advice. I have passed all your comments to my sister, and she has decided t9 open her own account and continue the business in her own name independently of the previous director.
TWO more questions please…
1. how does she remove her name as Director?
2. What should she now do about paying the Tax and NI that he hasn’t paid on her behalf for the last year?
If, as I hope, she is setting up an entirely new arrangement, that tax and NI is not her problem to pay. She should report the failure to pay to HMRC and they should pursue the previous director, BUT she needs advice as to whether that brief interlude with her as director muddies the waters - see Marcon's advice here:Marcon said:
Actually it's the responsibility of the directors (who run the company), not the shareholders (who own the company).penners324 said:Becoming a director gives some personal legal obligations.
However, who owns the business?
Not paying paye for a year is a massive red flag. However, it's the owners responsibility.
Resignation and set up your own. Take the clients with you
Signature removed for peace of mind1 -
The whole situation is very serious for a number of reasons - not least that company directors can be held personally liable for unpaid NI/PAYE. OP, your sister needs to take action now, not cross her fingers and hope.Emmia said:to remove herself as a director there is an online (or paper) form
https://www.gov.uk/government/publications/terminate-an-appointment-of-a-director-tm01
I very much doubt she'll have the necessary log on details to do it online, but if she seriously thinks she has been appointed without her express consent (and looking at earlier posts, it suggests that she DID agree, so be careful), she can contact Companies House and ask them to remove her because the filing was made in error: enquiries@companieshouse.gov.uk
With regard to unpaid tax and NI, helpful info here: https://taxaid.org.uk/tax-information/employee-paye/problems-with-employers
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1 -
Thank you everyone for all your replies…this forum is so helpful and I’m so grateful to you all for taking the time to reply 🙏0
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