Contractor UK Bulletin Board - View Single Post

2nd December 2003, 10:13

The illegality is under the companies act. For this to have any sanction it requires wounded shareholders to complain. In the case of most director controlled close companies this is unlikely to be a problem - thus there are no real teeth.

However, that is not to say that going over 5k is not without risk. The IR can treat these as net payments - subject to PAYE and NI. If the position is properly regularised by the end of year then it should be ok.

Further your accountants will need to put a note in the company accounts, which does rather draw attention to the fact that you are using company funds as a personal piggy bank.

2nd December 2003, 10:13	#3
ASB Posts: n/a	DCA The illegality is under the companies act. For this to have any sanction it requires wounded shareholders to complain. In the case of most director controlled close companies this is unlikely to be a problem - thus there are no real teeth. However, that is not to say that going over 5k is not without risk. The IR can treat these as net payments - subject to PAYE and NI. If the position is properly regularised by the end of year then it should be ok. Further your accountants will need to put a note in the company accounts, which does rather draw attention to the fact that you are using company funds as a personal piggy bank.