Hi Gökhan, thank you for your feedback. We are glad that you have found this video useful! Is there anything else that you would like us to cover for next time?
Hi Laura! Thank you for your kind feedback. We are always happy to help and answer any questions you have as best we can. Is there anything else you would like us to cover?
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Wow! From what appears at first glance to be a very simple and straightforward topic, it is actually a complex issue as the answer to the question very much depends on circumstances. A very interesting watch - - well done Team 1st Formations! Quick question: if I wanted to create a director's service agreement - who would do this for me?
Hi Graeme! Thank you for your feedback. Yes, absolutely the topic is actually far more complex than it originally seems but we hope we have helped you understand this more thoroughly. A solicitor is a type of lawyer who would be able to assist you in drafting a director's service agreement. Is this something you are looking to do?
@@1stformations Yes, my company is at the stage where I am considering appointing additional directors, so creating directors' service agreements is something that I will need to address. I will take the matter up with my solicitor. Thank you again for your kind advice.
Hi Miles! No problem at all. That is great news. Please feel free to check out our blog pages here for more information regarding company formation: www.1stformations.co.uk/blog/category/company-formation/ What type of business are you looking to set up?
@@mileshogg4918 Hi Miles, yes absolutely! We have an eSeller package that is ideal for ecommerce and dropshipping. For more information, please see our eSeller package here: www.1stformations.co.uk/compare-packages/#eseller Is there anything else we can help you with?
You are welcome, John. What a great question. A director's service agreement can have anything you would like within the contract. However, most contracts typically include the basics such as terms of employment, holiday entitlements, duties, benefits, etc. However, if you as the employer wish to include other aspects to the contract, you are more than welcome to do so. Does this help?
Hi Adam! Thank you for your comments. Some companies actually give out the job title 'Director' without appointing them officially on Companies House. This is permitted, and so long as they are not actual officers of the company then this does not need to appear on Companies House. What else would you like to know?
Hi Keziah. Yes, speaking with an accountant or a HR expert would be a great place to start to get a written service contract drawn up as they have the knowledge and expertise to get these done for you. What were your thoughts on this week's video? We would love some feedback!
What if a company (Ltd) only has two directors. They both carry out services for the business ...and derive a net profit at the end. How do you account for their shares? Obviously they dont want to be considered employees, as theres only two of them (say couple 50/50). How do you account in the financial statements what they should get? Through dividends? Or shares? Share holders' equity? Have seen this come up many times and read that when the couple takes funds for themselves after net profit that this should be taxed. Can anyone explain or help?
Thanks for the question. I'm afraid we can't advise from a tax or accounting perspective, nor can we advise from an employment perspective. However, in the first instance we would note that the payment of directors for their services is usually set out in their service agreement with the company. I am assuming that the two directors are also the two shareholders of the company also, in which case they could also be paid in dividends (either instead of, or in combination with, a salary). The actual amount of dividend they receive is dependent on the amount of dividend that is declared (the amount that is declared is usually approved by the shareholders, i.e. a final dividend, or by the directors, also known as an interim dividend). The amount of shares they hold (and structure of the company's share capital) then inform how much of the dividends they themselves will receive. We hope that helps!
As a Non Resident director how should I pay myself from the company? Can I set variable salary for directors? Because we are not in a state to give fixed salaries to directors that are working in the company. In this scenario what do you suggest?
Hi Ed! Thank you for your feedback. Please feel free to check out our channel for more informative videos. Is there anything you would like us to cover?
Interesting well done this brought so much clarity to me .Thank you A quick question so I was a director just holding office being paid with working hours stationed in a permanent building paying taxes. was terminated and now the company is saying i was not a "worker" but a director. I have no contract to prove I was a worker other than payslips TD4 job letter,saying I was an Administrative Manager could these items hold up in court that I was a worker?
@@cindymohammed1647 Whilst we are not experts on employment law outside of the UK, we would suggest that it could be inferred by a court that the words "Basic Wage" mean that you had entered into a contract with your employer.