LTD co Director and employee same time

[grow2011]

Hi,

I am a director of my own company(A). Three months before I started working in another company(B) as an full time employee.

I haven't make redundant myself from A.
I haven't generated payslips for the last two months before I joining at B.
I haven't generated P45 to give to B.

Currently I am director of A, and full time employee of B. I dont want to leave the employement of A. I want to make payslips for A also.


Can I be employee of two companies at same time?
Does the HMRC check the employement status, any method they use for this?

I have told my current employer(B) that I am not part of any other organisation while I was joining with (B)(Means I am not director, employee or working in any other organisation. I was thinking that, I could dissolve my company(A) with in months, and wanted to avoid problems. )

1) Would my current employer needs to inform HMRC that I am working with (B) only, and if I dont close my company would there be any problem?

2)Can I check from HMRC about my employement status or information provided by my company?Or can I get some information from anywhere in my payslip about my employment status?

Please suggest

Thanks in advance

 

[elaine@cheapaccounting]

Yes you can be an employee of both but you would be taxed on a BR code. I would suggest not taking a salary from your own limited company but discuss this with your accountant.

Sorry but I got lost on the rest of your questions - with all these As and Bs


Can you just summarise the main issues please.

 

[grow2011]

Thanks for the reply Elaine.

Does my current employer(where I work now, this is not my own company) would have informed the HMRC about my only one job as per the information I gave to them?

In future would it be a problem if I am being continuing as director of my own company?

Do I need to inform my current employer that I do not intend to close my company and I would be continuing as director eventhough I do not draw any salary from my own company?

Thanks again for your time

 

[Truemanbrown]

Didn't your current employer get you to fill in a Form P46 whereby you would have had to tick a box to notify the Inland Revenue that you had other employment.

 

[elaine@cheapaccounting]

Right - so you are not employed by your limited company?


You would have to provide your new employer with a P45 or complete a P46 - if a P46 then file in box B on the P46.



As to what you do with the limited company - that is up to you and any limitations in your contract of employment.

 

[grow2011]

Thanks truemanbrown

I gave my current employer a P46 in which I have ticked the B which states that

" This is now my only job, but since last 6 April I have had another job, or have recieved taxable jobseeker's Allowance, Employment and Support Allowance or taxable Incapacity Benefit. I do not recieve a state or occupational pension ".

I selected this option becasue I was thinking to dissolve my own ltd company with in months. I haven't generated any payslips from my own company after joining this current organisation. But I am still director of my own company.

My case is a little bit complicated.

I am not thinking to dissolve my company now.

Do I need to inform my current employer about this?

Would HMRC make any problem about this?

Thanks

 

[grow2011]

Thanks Elaine,

I have given P46 with box B filled to my current employer. But I hope it would not be a problem being a director of my own company.

But in another questionnaire, given by my current company, I informed them that, I dont hold any other positions in any another organisation. I was thinking to dissolve my own company. But couldnt dissolve mine. And I am still director. Would this be a problem?

Thanks again

 

[elaine@cheapaccounting]

Would this be a problem?

Thanks again

I think that is a question to ask your employer

 

[grow2011]

Thanks Elaine.

The office which do all the payroll matters for my current co. is situated in Dubai, as i have heard. And I am a little bit worried, that they may make any problem, as I had informed them that I am not involved in any other organisation, and still being a director. I cannot close/dissolve my ltd co before next Feb.
Actually I have given them wrong info. I had to dissolve my ltd co.
I wanted to avoid hassle as having a ltd co also. But unfortunately I have to keep my co for next few months also.

I am confused about the action my current co would take if I contact them and saying that I am still a director.

Thanks

 

[elaine@cheapaccounting]

I am confused about the action my current co would take if I contact them and saying that I am still a director.

Thanks

well only they can tell you that - no one here will know the answer. It may not be an issue if you tell them. Lying may be an issue of course.

 

[elaine@cheapaccounting]

2. You can call HMRC and get your employment status and tax code will give you hint.

????? what hint will it give you?

 

[grow2011]

Ok.

So I can be a director of my company at the same time being a staff of another co.

I am not going to draw any salary in these months(since I became staff in the current co.)

But one doubt remains.....

If I am a director, and not an employee of my company, is the dividend only way to draw money out?
(If a director has to get salary, or director is an employee by any rules, then my case become complicated. I would have to make payslips, inform my current company, etc. )

I couldn't find any information, about a director's status in company formation articles. I am still confused, a director is an employee or not? Or can I make redundant myself from company, issue a P45, and still act like director)

Thanks

 

[elaine@cheapaccounting]

You can be a director without pay.

You are also a share holder and can get dividends - assuming you have profit in the business!

 

[grow2011]

Thanks for the reply Elaine.

I think by 'director with out pay' you mean, I don't have to create payslips. I can withdraw money by dividends/interim dividends.


I think this solves my problem. I am not going to make payslips of my own co. for the months I am working as a staff at the current company.

But before stopping the payslips from my own co. , I may need to pay myself redundancy payment and issue a P45.

Any idea, what other things I would have to do otherthan redundnacy payment & P45?

Thanks again

 

[elaine@cheapaccounting]

Thanks for the reply Elaine.

I think by 'director with out pay' you mean, I don't have to create payslips. I can withdraw money by dividends/interim dividends.


I think this solves my problem. I am not going to make payslips of my own co. for the months I am working as a staff at the current company.

But before stopping the payslips from my own co. , I may need to pay myself redundancy payment and issue a P45.

Any idea, what other things I would have to do otherthan redundnacy payment & P45?

Thanks again

Redundancy? Why? Did you have a contract of employment with your company?

 

[grow2011]

I started my own company and made myself as a director + employee. I haven't made a contract(employement contract). (I think If I wish I can make one with last year date).

In this case in which the company is becoming dormant(I think, as I am not dissolving at the moment, and not having any trading), I think I need to pay meself a redundancy payment?


Because legally, the employee is leaving the company not becasue of his problem, isn't it?It is purely becasue the company is ceasing trade.

 

[elaine@cheapaccounting]

Suggest you read up on it ..

http://www.business-lawfirm.co.uk/Articles/Company/Director-Redundancies.aspx

What salary did you pay yourself?