A driector has a fiduciary responsbility to do what is best for the business. Money may be taken out as salary and so forth or as payment for other servces rendered. But to simply remove money for no reason and fail to account for taxes properly is tax fraud, potentially bank fraud, and perhaps defrauding investors.
Be careful, very careful how you remove money from your business.
Good Luck.
2007-02-13 09:13:40
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answer #1
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answered by planningresult 4
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If a Director takes money out of a business it is classed as one of two things.
1) He is taking a dividend payment, but the company must be making a profit.
2) It is classed as a Director's loan. If written off, he'll pay tax/NI on it.
If there are more than one Director, it would deemed inappropriate if the other didn't know that this happened. Other Directors would want similar amounts or in proportion to his shares.
If the company went bust, there would be a DTI investigation and the Director could become liable for these amounts and be struck off as being a Director again for a certain length of time.
To keep the tax man happy, it's better to declare a dividend at fixed intervals and declare it in the books as such.
2007-02-14 16:09:16
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answer #2
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answered by Anonymous
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That depends on many things.
If the payment is agreed by the directors as part of his remuneration package, then provided it is declared on a P11D, there are no tax or legal implications.So you can pay your personal items from the company.
If the expenditure is not authorised it is either theft, or if it can be ratified later, it will be subject to taxation (and penalties) by HMRC.
If you don't subject it to PAYE you are asking for trouble unless you tread very carefully.
2007-02-13 19:15:07
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answer #3
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answered by Do not trust low score answerers 7
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Depends on what it was taken for, and if he legally has the right to do so.
A director can still be an embezzler, if he's simply yanking money out for his own personal uses, over and above his salary or anything else he's supposed to be paid.
2007-02-13 14:09:29
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answer #4
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answered by Yanswersmonitorsarenazis 5
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A Director has to be a shareholder to take money for his/her own use and declared to the Inland Revenue
2007-02-13 14:24:14
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answer #5
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answered by Branberry 2
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Yes...anybody taking money from a company for personal use is "stealing". Should that be allowed in any situation ? No... and some people steal "time" or "money" from a company by lying on their time sheets and I feel they should be penalized or terminated, don't you ?
2007-02-13 14:35:56
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answer #6
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answered by BRAT 4
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Yes he can - if it is for personal use he has to pay tax on it and NI for that matter (UK) also have the say-so of the other Directors
2007-02-13 16:47:30
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answer #7
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answered by Professor 7
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If it's for anything other than company expenses then yes. I beleive it's called embellishment.
2007-02-13 14:09:21
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answer #8
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answered by bassmonkey1969 4
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DON'T KNOW SORRY
2007-02-13 14:22:07
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answer #9
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answered by Anonymous
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