Finally received a payment - making sure accounts look correct

[Matt21]

Wasn't sure where to put this rather general question, but since we're a start-up, hopefully this will be a suitable section of the forum.

We are a software company - three directors with equal shares. One full time, two part time since January 2014. Main product takes a long time to develop, but a smaller product developed December-February has just paid off for about £9K.

As the payment for this has just come through, I am expected to register the company as active by HMRC in the coming three months. Understand then, that we have been inactive since January 2014, as the company has had no income. But during this time-period we've each been working on the products for the company.

Asked previously (by peers) if the company "employed" anybody, I would say "no" on the basis that nobody was being paid. Q1) Was this strictly correct, given that the three of us were working for the company, but just expecting no payment (as we knew the company accounts were empty and would remain so for some time)?

With money now in the company accounts and looking to be split between the two most desperate of us, I would like to pay it out to us for work done during December-February (when the relevant product was being developed). Q2) Is this possible, given the answer to the previous question?

Finally, and this depends a little on the the previous two questions, Q3) should we be treating all the work done towards company products since January 2014 as owed work, meaning that we post a large loss equal to that, less the £9K that we are about to pay out ? Is this approach acceptable given our "inactive" status by HMRC?

Best regards,
Matt

 

[Scalloway]

For the first year, which I assume ended in December 2014, I would leave it as dormant. As long as you tell HMRC that it is active this financial year I don't see a problem with paying yourselves for the work done to date.

 

[Bob]

Unless you change the accounting reference date. your first accounts for filing at Companies House should be made up to January 2015.
Have you incurred any costs? If so, has this been paid for by the directors?
You may in that case be able to draw back what you have paid
If it is pure profit, you can either draw it as salaries or pay yourselves a dividend.
If you have an accountant, you should consult them about what is best in your personal circumstances
If you haven't got an accountant, get one
There are some very good accountants who post on here who would be happy to advise you
p.s. Do you have a shareholders' agreement. Now is the time to do one before your game goes viral