Disguised Remuneration in a Collapsing Company: Why HMRC Is Watching

When a company nears collapse, directors often make fast decisions to protect their income or extract value before liquidation. But what may seem like reasonable planning can easily cross the line into disguised remuneration, which is a red flag for HMRC and liquidators alike. In 2025, we are seeing increased enforcement around the reclassification of…

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Navigating Director Disqualification: The Appeals Process and Other Options

Being disqualified as a company director can be a daunting experience, but there are options to challenge or even change the decision. Whether you wish to appeal the ban, reduce its duration, or obtain permission to act as a director despite the disqualification, understanding your options is crucial. Here’s a guide to navigating the process…

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Understanding Unlawful Dividends for Company Directors

One of the appealing benefits of running a limited company is the ability for directors to receive the majority of their remuneration as dividends. This method is typically more tax efficient than taking a salary solely through PAYE. However, the timing and legality of dividend payments must be carefully considered to avoid the risk of…

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How to Defend Against a Misfeasance Claim

Facing a misfeasance claim as a company director can be a daunting and stressful experience. Misfeasance, as defined by section 212 of the Insolvency Act 1986, occurs when a director or ex-director misapplies, misappropriates, retains, or becomes accountable for a company’s money or property. The implications are serious, often involving allegations of misconduct, dishonesty, or…

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Directors: What Are The Grounds For Disqualification?

grounds for disqualification

When a company director’s conduct is deemed unfit, the consequences can be severe. Disqualifying a director is a legal measure that prohibits directors from engaging in certain activities, and the grounds for disqualification are diverse. Grounds for Disqualification: Under the Company Directors Disqualification Act 1986, directors can face disqualification if they are found guilty of…

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