Answers
What are a director's legal duties?, The Companies Act sets out seven duties, including acting within powers, promoting the success of the company, exercising independent judgement and reasonable care, avoiding conflicts and declaring interests.
Can I be personally liable?, Usually the company is liable, but directors can be personally liable for wrongful trading, unlawful dividends, personal guarantees, and certain unpaid taxes where behaviour was deliberate.
What salary should a director take?, It depends on the Employment Allowance position, your other income and your National Insurance record. Many take a salary around the personal allowance and the rest as dividends.
Can I lend money to my own company?, Yes, and it can be repaid tax-free. Interest paid to you is taxable personally and requires a CT61 return by the company.
What if I have taken more than the company can pay as dividends?, The excess becomes a directors loan. Repay it within nine months and one day of the year end or the company pays a 35.75% section 455 charge (33.75% on loans made before 6 April 2026).