Pros and Cons of Company Secretary

[Lewis]

Am just wondering if it is worth my wife resigning as company secretary in April when the company no longer needs one. As far as I can see the Pro is that she has less responsibility and work making things simpler for us (plus she doesn't need to be answerable to HMRC). The Con is that I can no longer pay her for performing this role. Thoughts? What are you lot going to do?

[Lucifer Box]

You can still pay her whether she is the company secretary or not. As long as she does work commensurate with the reward of course (for the benefit of the HMRC lurkers).

[Archangel]

and visa versa. my wife is the CoSec, but is unpaid.

[Lewis]

You can still pay her whether she is the company secretary or not. As long as she does work commensurate with the reward of course (for the benefit of the HMRC lurkers).

Absolutely, she is paid for book keeping as well. Just means her salary will be less if she has less work to do. But yes, it won't make much difference. Am struggling to find a good reason for her top stay on as co. sec.

[malvolio]

Absolutely, she is paid for book keeping as well. Just means her salary will be less if she has less work to do. But yes, it won't make much difference. Am struggling to find a good reason for her top stay on as co. sec.

So you have someone to sign contracts on behalf of the Company and respond to Companies House queries?

[Lewis]

So you have someone to sign contracts on behalf of the Company and respond to Companies House queries?

Yes, me.

[malvolio]

Yes, me.

But you are presumably at pains not to get your name into any contracts for work to avoid one of the more obvious IR35 traps. Not signing the contract personally is a good start, isn't it...?

[philip@wellwoodhoyle]

It will take a while for the "one person" concept to filter through to banks, clients, etc. Whilst you may "legally" only need one person, what happens if the bank's mandate or your client contract requires two signatures - do you really want a legal argument about who's right - would it not be simpler to keep the co-sec for a while until the change filters through to everyone else and in the meantime you can both continue to jointly sign official paperwork without the hassle of playgrounds arguments as to who is right which are inevitable for such a major change after such a long time of 2 people being needed. Life's too short. Keep the co sec for a few months - what's the harm?

[Lewis]

But you are presumably at pains not to get your name into any contracts for work to avoid one of the more obvious IR35 traps. Not signing the contract personally is a good start, isn't it...?

Oh please. I have yet to hear anyone say that is even remotely an IR35 issue! I sign as company director as I suspect do 99% of contractors.

[Lewis]

It will take a while for the "one person" concept to filter through to banks, clients, etc. Whilst you may "legally" only need one person, what happens if the bank's mandate or your client contract requires two signatures - do you really want a legal argument about who's right - would it not be simpler to keep the co-sec for a while until the change filters through to everyone else and in the meantime you can both continue to jointly sign official paperwork without the hassle of playgrounds arguments as to who is right which are inevitable for such a major change after such a long time of 2 people being needed. Life's too short. Keep the co sec for a few months - what's the harm?

Sounds like a good plan to me.