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The owner of a business is not an employee (at least in Austria). Therefore a one man company doesn't pay any wages. The owner just gets the profit that the com

The owner of a business is not an employee (at least in Austria). Therefore a one man company doesn't pay any wages. The owner just gets the profit that the company makes.

pbhjpbhj 11y ago
AFAICT he's in Madrid, Spain? Anyway, it's different in the UK, a company needs a minimum of 2 officers, you can be a sole-trader though. A sole-trader takes drawings from their business account, but it's not necessarily the whole revenue less costs - you might be saving for capital investments and you wouldn't want to pay income tax and Nat.Ins. on that money. In the UK the owners of a company can be employees too, you can then get money as wages as well as getting dividends as an owner. [Disclaimer: I'm not a financial advisor, check this detail before relying on it.]
- srgseg 11y ago
  In the UK you can have a one person limited liability company, where the same person acts as the sole director and the company secretary. That sole director can either be an employee and a director or just a director. The difference is that their portion of income from being a director will be in the form of dividends, and the income from being an employee will be salary.
  - pbhjpbhj 11y ago
    That must have changed (in the Companies Act 2006?)? I'm director and secretary of a ltd co but when we formed our company I'm almost certain we needed two officers at minimum? [http://www.companybug.com/how-many-officers-must-a-limited-company-have/ http://www.companybug.com/how-many-officers-must-a-limited-c... - suggests I haven't dreamt it up!] You're quite right though, see Ch.2 at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/418150/GP1_Incorporation_names_v5_4-ver0.29-4.pdf https://www.gov.uk/government/uploads/system/uploads/attachm.... or see https://www.gov.uk/limited-company-formation/appoint-directors-and-company-secretaries https://www.gov.uk/limited-company-formation/appoint-directo.... Unfortunately I can't add an errata above as editing that post is no longer allowed.

The owner of a business is not an employee (at least in Austria). Therefore a one man company doesn't pay any wages. The owner just gets the profit that the company makes.

pbhjpbhj 11y ago

AFAICT he's in Madrid, Spain? Anyway, it's different in the UK, a company needs a minimum of 2 officers, you can be a sole-trader though. A sole-trader takes drawings from their business account, but it's not necessarily the whole revenue less costs - you might be saving for capital investments and you wouldn't want to pay income tax and Nat.Ins. on that money. In the UK the owners of a company can be employees too, you can then get money as wages as well as getting dividends as an owner. [Disclaimer: I'm not a financial advisor, check this detail before relying on it.]

srgseg 11y ago
In the UK you can have a one person limited liability company, where the same person acts as the sole director and the company secretary. That sole director can either be an employee and a director or just a director. The difference is that their portion of income from being a director will be in the form of dividends, and the income from being an employee will be salary.
- pbhjpbhj 11y ago
  That must have changed (in the Companies Act 2006?)? I'm director and secretary of a ltd co but when we formed our company I'm almost certain we needed two officers at minimum? [http://www.companybug.com/how-many-officers-must-a-limited-company-have/ http://www.companybug.com/how-many-officers-must-a-limited-c... - suggests I haven't dreamt it up!] You're quite right though, see Ch.2 at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/418150/GP1_Incorporation_names_v5_4-ver0.29-4.pdf https://www.gov.uk/government/uploads/system/uploads/attachm.... or see https://www.gov.uk/limited-company-formation/appoint-directors-and-company-secretaries https://www.gov.uk/limited-company-formation/appoint-directo.... Unfortunately I can't add an errata above as editing that post is no longer allowed.