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Employee note query on micro balance sheet

Is an unpaid director an employee?

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I have a client who has set up a second company and is the sole director/shareholder.  There are no employees and she has no remuneration/salary/drawings from the new company.  How many employees do I include in the number of employees note that has to go in the accounts?  None or one?


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By thomas34
08th Oct 2020 13:44

I don't think the payment or otherwise of salary is relevant rather than whether directors without a service contract should be counted. Personally I include all directors in the number but examining many such other balance sheets I think the majority are not including them i.e. they quote zero.

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Replying to thomas34:
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By thevaliant
08th Oct 2020 14:03

I suspect the majority do miss them out.

But like you, we always include them.

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By Paul Crowley
08th Oct 2020 14:09

Used to be zero as no requirement to disclose, or more precisely the original intention.
Idiot draftsman left it in.
Now need to disclose.
If you enter nil or ignore good quality software will point out and raise a warning ( did not used to )

On a trading company I put all directors
On a service charge company I put nil

My partner tells me it is rejected when trying to file Corp Tax returns, for years April 20 onwards
BUT possible that the software causes this

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By Wanderer
08th Oct 2020 14:10

If no pay and no service contract, nil, per Guy Loveday.

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