resigning a directorship

[SueEllen]

The expenses might be problematic as they have to be wholly and exclusively. If she's not been working at clients she can only claim things she's paid for whilst looking for work or maintaining the company. She can't be claiming lunches as there is no client but she might be able to claim printer ink or mobile costs. I'd be wanting to go through her expenses with a fine toothed comb to make sure she isn't taking the piss.

Not strictly true.

If there are potential clients - this she needs to back up with emails or letters showing meetings - then she can claim some lunches either as a business expense due to travelling, or as entertainment if she has a meeting with the potential client over a meal. She can also claim travel expenses to these meetings.

However as she has taken money out of the company without telling the OP then just request that she justifies every single expense. If she then comes back and says I was travelling to y see xx as potential client and the entire travel and meeting took 6 hours then ask for proof of the meeting. If there is no proof the meeting didn't happen. She can falsify the proof but let's not go there.

[greene]

Thanks everyone for the feedback.

The expenses part of this makes good sense, I will take that on board.

On the salary part: can a company employee determine to take their own salary, and also the amount that they are paid every month? Surely, once a director has resigned and reduced himself/herself to the status of employee, then this person must negotiate anew any salary payments and amount with the remaining company officer(s).

[northernladuk]

Thanks everyone for the feedback.

The expenses part of this makes good sense, I will take that on board.

On the salary part: can a company employee determine to take their own salary, and also the amount that they are paid every month? Surely, once a director has resigned and reduced himself/herself to the status of employee, then this person must negotiate anew any salary payments and amount with the remaining company officer(s).

You'd think so if everything was done properly. She would need a contract of employment and be paid at least the National Minimum wage. If she is no longer an officer or director of the company and paying herself less than NMW then the company would be breaking the law surely? That's just the start of it I would have thought.