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If the director does not have a separate employment contract with the company, then he is not an employee and issues like the National Minimum Wage do not apply. The person is just occupying the position of company director, for a small salary.
HMRC might not like it, but there is not much they can do about it.
You need to make sure that dividends are processed properly, or HMRC can try to argue that they are payments on account of a salary. This means ensuring that dividends are only paid out of post-tax profits (there should be evidence of this), and that dividend minutes and vouchers are prepared each time a dividend is paid. Regularly drawing small amounts from the company and then clearing it all by declaring a dividend at the end of the quarter is a risky strategy.
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