Originally posted by greene
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resigning a directorship
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P.S. What Spreadsheet? Revolutionising the contracting market again. -
Originally posted by simondolan View PostThe credit in should be easy - the bank will tell you who it is from, and then common sense should indicate what it is for. The payments out presumably then are all to the co director in one way or another. If dividends they should be easy to identify as you will have taken a pro rata amount based on your shareholding. You are then left with either a loan or expenses. Assuming you know what they have invoiced out, you should be able to make a good stab at estimating what the expenses would have been. Balance you'd put to their loan account. Send them a copy of the draft accounts by recorded delivery and email and ask for their comments. In the absence of a response, assume them to have agreed and submit the finals.The greatest trick the devil ever pulled was convincing the world that he didn't existComment
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Originally posted by LondonManc View PostThe payments out should be just as traceable - every account/facility has a sort code and account number. At the very least, Greene should be able to request the last 2-3 years bank statements (if they cannot access them online) and see if these acc/sorts are recurring or not.P.S. What Spreadsheet? Revolutionising the contracting market again.Comment
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Originally posted by simondolan View PostYes, but I think the payments were all made to his co director. His point was he didn't know whether they were for divi's, expenses etc
I have all the sort codes, card numbers, etc, and all the paper bank statements for the last ten years, it's just that I don't have clarity on what exactly the outgoings match up to. I can make an educated guess but it will not always be correct.
I am actually starting to wonder how beneficial it is for me to 'do the right thing', i.e. be diligent and create a correct set of accounts. What this does in effect is to give HMRC a precise figure to come after me for, as the remaining director.
I had believed that HMRC would be balanced and would split the accountability across myself and my erstwhile co-director, but having reached out to people who I know with some experience of HMRC, I have been told that they (HMRC) are less concerned about where or whom the money arrives from, so long as they get it. And if I am the only person communicating and playing ball, as it were, then the easy option is to come after me.
Pie in the sky, perhaps, but what I would really like is for HMRC to take the initiative and investigate what I believe to be malpractice. Perhaps reporting that I am struggling to create correct and accurate accounts (which is the truth) might encourage HMRC to investigate the company.
Ideally I would like to avoid the courts, given the cost aspect and given that there is no guarantee that I will get my desired outcome. But if HMRC aren't going to be proactive, and my ex-colleague continues to ignore me, then maybe that is my only and last resort.Comment
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If I were in this situation, I'd probably ask my accountant to write the former director a letter stating that if they do not justify every payment to their account and fully cooperate in reconstructing accurate accounts, the matter will be reported to the authorities as possible embezzlement. And then, if there isn't cooperation, that's what I'd do.
There was no dividend if it wasn't authorised by directors. There is no expense payment for which the company does not have records justifying the expense payment. There is no director's loan which hasn't been approved by the directors, and there is no director's loan for someone who isn't a director anyway. So any funds paid out to your former partner which are not dividends, not expenses, and not director's loans were fraudulently obtained.
That would not be a matter for HMRC, that would be a matter for the police. So your accountant may end up having to tell HMRC that there has been embezzlement and fraudulently filed accounts, and you are trying to sort it all out. They will still want their money but presumably they'll give you enough time to figure things out.Comment
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Originally posted by WordIsBond View PostIf I were in this situation, I'd probably ask my accountant to write the former director a letter stating that if they do not justify every payment to their account and fully cooperate in reconstructing accurate accounts, the matter will be reported to the authorities as possible embezzlement. And then, if there isn't cooperation, that's what I'd do.
There was no dividend if it wasn't authorised by directors. There is no expense payment for which the company does not have records justifying the expense payment. There is no director's loan which hasn't been approved by the directors, and there is no director's loan for someone who isn't a director anyway. So any funds paid out to your former partner which are not dividends, not expenses, and not director's loans were fraudulently obtained.
That would not be a matter for HMRC, that would be a matter for the police. So your accountant may end up having to tell HMRC that there has been embezzlement and fraudulently filed accounts, and you are trying to sort it all out. They will still want their money but presumably they'll give you enough time to figure things out.Comment
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Originally posted by simondolan View PostYes, but I think the payments were all made to his co director. His point was he didn't know whether they were for divi's, expenses etc
WordIsBond's excellent reply can then be used to sort out the why.The greatest trick the devil ever pulled was convincing the world that he didn't existComment
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Originally posted by WordIsBond View PostIf I were in this situation, I'd probably ask my accountant to write the former director a letter stating that if they do not justify every payment to their account and fully cooperate in reconstructing accurate accounts, the matter will be reported to the authorities as possible embezzlement. And then, if there isn't cooperation, that's what I'd do.
On a separate note, she continued to take a salary and a monthly business expense until June of this year despite not bringing any revenue into the company for well over a year before that date. I'm not sure there is a law against that, but I am wondering if either of these two items were allowable without my approval as director? (I will shortly be getting legal advice and will presumably get my answer, nevertheless I am still interested in the views of the smart folk on here.)Comment
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Originally posted by greene View PostOn a separate note, she continued to take a salary and a monthly business expense until June of this year despite not bringing any revenue into the company for well over a year before that date. I'm not sure there is a law against that, but I am wondering if either of these two items were allowable without my approval as director? (I will shortly be getting legal advice and will presumably get my answer, nevertheless I am still interested in the views of the smart folk on here.)
As an officer of the company, I'd be surprised if there is anything illegal about being paid when you aren't bringing money in - if there was then every non-executive director in the country would be in breach of that law.Comment
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Originally posted by greene View PostOn a separate note, she continued to take a salary and a monthly business expense until June of this year despite not bringing any revenue into the company for well over a year before that date. I'm not sure there is a law against that, but I am wondering if either of these two items were allowable without my approval as director? (I will shortly be getting legal advice and will presumably get my answer, nevertheless I am still interested in the views of the smart folk on here.)
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.'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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