Wages wager

I am just completing the year-end accounts for a very profitable limited company which provides flooring services. I raised a query with the sole director (and 100% shareholder) of the company related to the cost of some redecoration work carried out at the company premises which comprises offices and warehouse space.

The director admitted that he had paid the decorating contractor an hourly rate of £34 for his work and in return the decorator did some major works at my client's private country house for a reduced rate of £6 per hour. My client does not see any problem here — each job has been priced on an agreed basis — it is just that the decorator is effectively giving a discount on the private work. He pointed out that the £6 per hour payment is above the Government's national minimum wage level so definitely avoids...