Becoming a Director

[Bustaxirish]

Hello There.

if setting up a company and one of the two people, who wants to be come a director, works full time, will this affect there tax status even if they are not taking anything from the business including wages, dividends, but basically nothing. I presume not? any information would be helpful

 

[dublin67]

Becoming a director may result in them being a chargeable person. This would require the individual to file a tax return (typically a Form 11) each year regardless whether a salary or dividends was taken from a company. For your own infomration a standard company, called a private company limited by shares, only requires one director. A secretary is also required and this needs to be a different persion if there is only one director.

 

[T McGibney]

You should not form a company without first obtaining quality professional advice on all the implications, and being fully reassured that you actually need it.

 

[Steven Barrett]

It won't have any impact on their income tax if they are not taking an income from the business. My wife is a director of my company and works elsewhere. As Dublin67 said, tax returns are required but as the company owner and a director also, I have to submit a tax return anyway. In reality, she signs the accounts and forms each year but does nothing else.