Pay on mobilisation - Rules for Company directors.

Discussion in 'Army Reserve' started by EX_STAB, Jul 6, 2008.

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  1. Now maybe I'm getting a bit ahead of myself here but this question occurs:

    If a Company employee gets "compulsorily mobilised" I understand that the army will pay his civvy salary up to a certain limit.

    However, as a Company Director, I don't have a "salary". I am paid whatever the company sees fit according to the profit it makes in any given period.

    So if I were to rejoin and get mobilised, what would I get?

    Consider that in this instance the Company is, effectively, just me so it's not the case that loads of other people are beavering away and I just get a share of the profits whether I'm there or not. Without me there, there would be no income.

    Lots of self employed people are "limited Companies" for all sorts of reasons, tax efficiency and liability being the main ones. This must happen all the time so there must be a system.

    How does it work?
  2. Produce records of profit and loss, this is used to set renumeration.
  3. msr

    msr LE

    I think you have to show evidence of your income over the 12 months prior to mobilisation.

  4. As simple as that? I'd thought it should work on that basis but of course expected that some arcane and impossible system would be in place. Thanks MSR too.

    I take it that the finer points would be available from the AFCO? Or would SABRE be a better bet?
  5. Sixty

    Sixty LE Moderator Book Reviewer
    1. ARRSE Cyclists and Triathletes

    To be honest mate, you'd be better rejoining before worrying about it.

    I'm assuming that you've been out for a while so it's not like you'll be on the first flight to the sandy places, and it’s still voluntary.
  6. Vote yourself a nice fat salary, like MPs do.
  7. For sure, which is why I said I was perhaps getting a little ahead of myself. It's an honest question though and something to figure into the equation. The hardest test on rejoining is convincing the Long Haired Brigadier so information such as this is quite important. I just want to have the answers to all the questions before I say "I've been thinking dear that I could...." ;)


  8. RP578

    RP578 LE Book Reviewer

    I do actually know of a Reg Reservist who upon volunteering for a tour convinced his boss (who he was obviously pretty matey with) to give him a pay rise for the duration tour on the understanding that it will be the Army which picks up the tab. Boss/mate agrees to create a new position warranting a colossal pay increase to be effective as of receipt of 'Brown Envelope'. Reservist goes to Chilwell with new salary, which the MoD duly matches.

    Reservist returns from POTL and slips back to old job and salary as the new fictional position is deemed redundant. Don't remember the particulars, but pretty sure the boss got himself remunerated too, for having to cover the Reservists new post while he was away.

    EX_STAB, as already stated, it's the same as for self-employed personnel. Just be sure to take every scrap of financial paperwork with you. The G1 admin at RTMC will be a real norze in a case like yours, but they are pretty good taking their time to getting it right up front.

    On a different note, what is it that's motivated you to rejoin? Not put off by all the ticking on here? :D
  9. I'm planning ahead for my mid life crisis ;)
  10. Im only guessing here, but unless you are on a PAYE scheme for your full salary, then your most recent tax return(s) will be used to calculate your income.