If you’re reading this, you’re probably a director or owner of a window and door installation company. Maybe you started out as a brilliant fitter, a natural salesperson, or an ambitious entrepreneur who spotted a gap in the market. What you almost certainly didn’tget was any formal training in how to run a limited company.
This isn’t your fault. Nobody teaches you how to be a company director. You won’t find “how to run a business” on the school curriculum – and there’s no briefing when you register your company with Companies House. You’re expected to just figure it out. And most of what you don’t know doesn’t become a problem until it’s too late.
None of this is exciting. For the large part it doesn’t help you grow your business or make you more profit. But it’s essential information that you need to know.
Throughout this year, I’ll be writing several articles to help bridge that gap. In each article, we’ll unpack one area of your responsibilities as a director or business owner – from tax compliance to payroll, from legal duties to company structure – and help you understand what’s expected of you, what the risks are, and how to stay in control.
You Don’t Know What You Don’t Know!
Most directors of small businesses are operating blind in at least one area. And it’s not always obvious until the fine or the tribunal or the tax bill lands. Here are just a few of the things I regularly see directors get wrong – and they’re not small errors:
- Mixing business and personal spending in the same bank account
- Taking money out of the company with no paperwork
- Missing PAYE or VAT deadlines by weeks or months
- Failing to enrol staff in a pension scheme on time
- Making payments to subcontractors without verifying them for CIS
- Not understanding what a Director’s Loan Account is – or how much tax it can trigger
- Thinking that because “it’s your company,” the money in the bank is yours to spend
- Not realising you can be held personally liable – or even disqualified – for compliance failures
And it’s not just tax and deadlines. Most directors aren’t aware that they have statutory legal duties under the Companies Act 2006. These include:
- Acting within the company’s constitution (usually your Articles of Association)
- Promoting the success of the company – not just for yourself, but for all shareholders
- Exercising independent judgment and reasonable care
- Avoiding conflicts of interest and declaring any that arise
These are not theoretical. They carry real consequences if breached – from financial penalties to director disqualification. And yet, almost nobody ever sits you down and tells you about them.
The Roles You Didn’t Know You Had
Another common source of confusion is your role. Most small business owners wear three hats at once: director, shareholder, and employee. Each of those hats comes with its own responsibilities – and its own tax treatment.
- As a director, you manage the business and make decisions on its behalf. You’re responsible for compliance and governance.
- As a shareholder, you own the business. You can vote to pay dividends and make certain structural changes.
- As an employee, you can receive a salary through payroll – with PAYE and National Insurance deductions.
But these roles aren’t interchangeable. If you take money from the company without recording it correctly – as salary, dividend, or repayment of a loan – you risk creating an overdrawn Director’s Loan Account. If that loan isn’t repaid within 9 months of your year-end, the company will face a tax charge of 33.75% on the balance. And that’s just one example.
Why It’s Worse in the Window and Door Industry
This knowledge gap is bad enough in any sector – but in our industry, it’s amplified.
- You’re taking substantial deposits from homeowners, often weeks before installation.
- You’re making payments to subcontractors, many of whom fall under CIS.
- You’re offering finance.
- You’ve got Building Regulation compliance to think about
What These Articles Will Cover
Over the coming months, we’ll break all of this down into manageable, understandable chunks. Topics will vary but may include:
- How to legally take money out of the company – salary, dividends, loans, expenses
- What your director’s duties really mean – and how to stay on the right side of them
- Key tax deadlines – and how to avoid nasty surprises
- CIS, PAYE, VAT and pensions – what you need to do and when
- Understanding your company’s legal identity – and how to protect yourself
- Avoiding the common traps that trip up thousands of directors every year
As I said, it’s not exciting stuff – and you don’t need to be an expert in all of it. But you do need to know enough to stay safe, make good decisions, and run your business properly