Hi
I have searched these forums for an answer on how to assess a director’s capital interest in the company, but there is a lot of conflicting information reg directors and I’m finding it difficult to come to a conclusive decision. We have a company director who is the owner of a limited company, his wife is the company secretary, he has provided company accounts and I have determined his earnings. However his balance sheet for the end of year April 2011 shows shareholders funds of £20,820. The HB guide advises to treat his interest in the company as capital, however going through some of the posts on the forum it has been advised that under HB reg 49(5) that we can disregard this capital as long as the claimant continues to work for the company, is this correct? if so why does the HB guide advise us to assess the capital?
Many Thanks
Riz