Business Inst - Directors Wages - Losses

[hina_pirzada]

Dear Members specially Zimba please read my below situation and give yours suggestions.

My company accounting period will ends at the end of this month. This is my last year and my extension will due in May 17. I have invested 52K under my name in the current accounting period which I suppose to be submit with my extension next year.

We have 2 Directors. One already got his ILR last year but still working as Director so obviously I will apply for extension alone.

My self I am taking Salary £800 every month so end of the accounting period my total salary is £8000.

Other Director is taking little bit more salary which is total £13593.60 at the end of the accounting period.

Account Current Situation.

Total Turn Over: £76,000.00
Expenses: £40.205.00 (paid to other companies like marketing and buying stuffs)
Staff Wages: £ 25,019.70
Director Wages: £21,593.60

Total Expense including Director wages: £86,818.30
Total Loss: - £10,818.30

Director Investment: £52,000.

I have following questions:

1) In above analysis how I use my investment.
2)Can the Director wages will be deducted from the company Income?
3) Can we pay staff wages from the Investment?
4) Can we cover other expenses from the investment?
5) Can Directors need to put money back into the account as an investment?

Please Zimba and others clear the confusion.

Thank you in adnavce.

[ishfaqsangra]

Better explain director wages from the start of the Visa and for all three years which will indicate how much total the director has taken and how much is the total investment

[zimba]

1) In above analysis how I use my investment.

In my view, your turnover covered all your expenses including employee wages.
This means that you used portion of your investment to pay remuneration to directors (including yourself).

2)Can the Director wages will be deducted from the company Income?

Yes

3) Can we pay staff wages from the Investment?

Yes

4) Can we cover other expenses from the investment?

Yes apart from things that are excluded in the guide

5) Can Directors need to put money back into the account as an investment?

Yes

[zamaha]

1) In above analysis how I use my investment.

In my view, your turnover covered all your expenses including employee wages.
This means that you used portion of your investment to pay remuneration to directors (including yourself).

2)Can the Director wages will be deducted from the company Income?

Yes

3) Can we pay staff wages from the Investment?

Yes

4) Can we cover other expenses from the investment?

Yes apart from things that are excluded in the guide

5) Can Directors need to put money back into the account as an investment?

Yes

Hi dear Zimba
You mean company turnover first must be spent on expenses and employees salaries and if anything left a director can use that? It is sensible when we do not have £50k investment.
The purpose of having investment is to spent on lawful expenses and employees salaries. So, why we cannot say this expenses has been paid from investmebt money and director salary from turnover?

If we pay all expenses from turnover the investment will be untouched and director can not get enough money to live, and when other employment is not allowed what is the choice?
Thanks