Terms & Conditions

[rwilson]

I have a problem with a director of a limited company who has for some years not received any earnings from the company.

I have aske him to supply his accounts which he is very reluctant to supply.

If, the company accounts indicate that the compny could be paying him a wage how is the best way to deal with the case.

I went on a course some years ago and was told that we had the discretion to treat a director as self employed under regulation 49(5) of the HB Regs.

I am not sure how the author arrived at this decision looking at the regulation!

On the other hand I could treat the claimant as having a notional income

under reg 42(9).

Has anyone any comments on the best way to deal with this sort of situation and can you treat a director as self employed?

[Kay_Tade]

If you are treating the claimant as a director of a limited company and in effect an employee, I think you will need to take the capital assets of the company into account on his claim. I think having a read of HB reg 49 (5) (6) may be of help. You need to confirm sole ownership of company, shares in company and directorship.

Hope that helps

[Kay_Tade]

[quote:dcc3cc1512=”chacha”]I think having a read of HB reg 49 (5) (6) may be of help. You need to confirm sole ownership of company, shares in company and directorship.[/quote:dcc3cc1512]

Just realised you have had a look at reg 49, If the claimant purports to work for the owner of the company and says the company does not belong to him then probably this reg applies. If not then I would apply a notional income as his earned income.

[Author]

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