Disguised employment

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Clients 16 year old son has had £15,000 deposited in his bank account by his estranged father, who requires him to send the money to a bank account designated by him.

The son does no work for the fathers business, but has been put on the payroll and has been appointed as a director without client or sons knowledge. Am I correct in thinking that as the son does not receive any of the remuneration, the father is commiting an offence? Are the Money Laundering Regulations being infringed?

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RLI
By lionofludesch
12th May 2020 20:43

Prima facie, yes.

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By lesley.barnes
12th May 2020 22:51

It's also fraud to appoint someone a Director without their consent. That needs reporting to Companies House and the son needs to be removed from the register. I would suggest that your client and her son might need legal advice or citizens advice because of the control the father is a exerting over the son to move money around for him.

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By ireallyshouldknowthisbut
13th May 2020 09:18

Are minors allowed to be co. directors?

I hope the son keeps the cash.

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Replying to ireallyshouldknowthisbut:
RLI
By lionofludesch
13th May 2020 09:22

ireallyshouldknowthisbut wrote:

Are minors allowed to be co. directors?

Yes, if they are at least 16.

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By Alex_T
13th May 2020 10:20

In short... YES!

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