Business Lease And Employment

Summary

Employing a former director as an advisor in the UK is generally permissible, but ensure there are no restrictions in the CVL terms and that the director is not disqualified. If the director is self-employed, draft a contract for services and comply with HMRC guidelines. Proper documentation is essential for upfront payments.

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I’m in the uk, I am acquiring the lease of a business premises at fair market value from a company going through a CVL. Am I able to employ the former director as an advisor to my new business?
Hi ****,
Yes, you can generally employ the former director as an advisor to your new business, but there are some considerations:
- Ensure there are no restrictions in the CVL (Company Voluntary Liquidation) terms.
- The former director must not be subject to any director disqualification.
Do you need more specific details about CVL restrictions?
Yes please
Hi ****,
Here are some details regarding CVL (Company Voluntary Liquidation) restrictions:
- **CVL Terms**: Check the terms of the CVL for any clauses restricting the employment of former directors.
- **Director Disqualification**: Verify if the former director is disqualified under the Company Directors Disqualification Act *.
Would you like to know how to check for disqualification or need more details on CVL terms?
If it were properly documented would I be able to pay him for a year up front?
Hi ****,
Yes, you can pay the former director upfront for a year if it is properly documented. Here are some considerations:
- Ensure the employment contract clearly outlines the payment terms.
- Verify there are no CVL restrictions on such payments.
- Confirm compliance with employment laws and tax regulations.
Would you like information on how to draft this agreement?
He would be self employed, would this make a difference?
Hi ****,
Yes, if the former director is self-employed, it would make a difference. Here are some considerations:
- **Contract for Services**: Draft a contract for services instead of an employment contract.
- **Tax Implications**: Ensure compliance with HMRC guidelines for self-employed contractors.
- **CVL Terms**: Verify there are no restrictions on engaging self-employed contractors.
Would you like specific information on drafting a contract for services?