Director allowed to invoice company for his services? | AccountingWEB

Director allowed to invoice company for his services?

I have a question which I require answer on behalf of my client.

A person who is director of the company and had withdrow cash from company's bank account for personal use over the period of 2 years.

He said that these payments are in return of services he provide's to company.

His total cash outlay come to £22,000 in last 2 accounting years of the company (2011 and 2012).

Company has made trading loss during the year and accounts are yet to submit to company house.

He is sole director of the company but there is a management committee who control the business affairs. Management committee allowed him to take payments in this form.

He is submitting invoices to company's account regularly.

He provide services to other companies and get paid from them as well.

 

My question is, what will be treatment of these payments?

Comments
There are 27 comments. Login or register to view them.

Not good news, but in my

johngroganjga |
johngroganjga's picture

He said that since he has

Abutalib |

No.

johngroganjga |
johngroganjga's picture

Is there any minimum limited

Abutalib |

It is possible

Paula Sparrow |
Paula Sparrow's picture

Yes but it's well under the

johngroganjga |
johngroganjga's picture

What services?

Alexdon |

.

ireallyshouldknowthisbut |

Remember under CA 1985

The Innkeeper |

Director provide consultation

Abutalib |

I'm not sure that I agree with some of the above comments

Justin Bryant |

Directors Allowed to Invoice Company For His Services

Wayne Pulman |

@ Abutalib (OP)

fawltybasil2575 |

@basil

Abutalib |

But, Justin

BKD |

@BKD

The Innkeeper |

Management committee?

Vaughan Blake1 |

Management committee

Cloudcounter |

BKD/Innkeeper

Justin Bryant |

Then we agree to disagree

BKD |

BKD

Justin Bryant |

Justin

BKD |

BKD

Justin Bryant |

@ OP (Abutalib)

fawltybasil2575 |

I think that

tonycourt |

@basil and all others

Abutalib |

@ Abutalib (OP)

fawltybasil2575 |