How illegal is...
 

Taking money from your company when your a director?

Our director is taking advantage of the economic climate and building a couple fo high spec houses on land he has bought whilst its cheap.

All well and good but he is using the projects in which to do, i.e invoicing the project for all the work. And its not just like £20k we talking £300k in some respects.

I seriously doubt he is declaring it to HMRC.

Now it might be he is building them to sell and put the money into the company but the chance of that is about 0.0%

Im only asking as we were told last week that no pay rises this year and we have already made 1 redundancy, and if I end up out the door it might help to take some evidence with me? :smt104

funny old world

Re: How illegal is...
 

Sounds dodgy but as for if its illegal no idea.

Hope you keep a job tho being outta work is horrible.

Re: How illegal is...
 

nah i dont think there is anything wrong with what he is doing. from what i gather from your short post boss has land and is bulding some property to sell. technically he is getting his company to build these houses (it looks like he's taking the money from the company, but on paper it probably means the company are doing the works!) there for once the project is finished your boss could sell these properties, then pay the company for bulding them.

however there is nothing to say a company has to make a profit on all works done. so technically it could cost the company £100k to build the house, but they may deem it the best option to sell the house for £90k! i'm not saying its the right thing to do if he's made someone redundant, but legally doing nothing wrong!

Re: How illegal is...
 

He could be taking the money as a 'Directors loan' which he is entitled to do

Re: How illegal is...
 

fair enough, its more that if it was above board we would have expected a job number and just everything be charged to that, but he is charing bits to each job trying to hide it..

Stil, itsl Rubbing me up the wrong way

Re: How illegal is...
 

Just document what you can, if you end up out of the door, approach the police for some advice, and if it's dodgy, the state will pick up the case.

Isn't blackmail illegal too? :p

Re: How illegal is...
 

Im sure if he's doing it so blatantly that you know about it then he's doing it legally.

Re: How illegal is...
 

yes but two wrongs make a wright, didn't your mum tell you that

Re: How illegal is...
 

+1

Re: How illegal is...
 

he can only take the money out as a directors loan if its profit that the company has already made, you cant take a directors loan on money that you know is required for the tax or vat.

even then it has to be formalised, im pretty sure the company has to eventually have a net beneift from the loan or HMRC come down on you.