Under FRS102 Section 1A, there is a new requirement for small companies to state the average number of employees.
Where you may have a husband and wife company, each paid £8,060 p.a. the natural answer would seem to be 2 as they are the only 2 people on the payroll.
However it is not as straightforward as that as Section 1AC.33 refers to the requirements of Companies Act 2006 S411 which states that you need to count the number of persons employed under 'contracts of service' by the company.
We don't want to suggest on the statutory accounts that the directors are employed under contracts of service as that would invite National Minimum Wage and Auto Enrolment issues.
It would appear then that in this example (and indeed the typical contractor company), the average number of employees is always Nil.
Anyone have any thoughts on this?