Forum

• # 54523
• Wed 16 Feb 2011 01:41 PM

Hello
I am looking for some guidance on whether the Directors of a  limited company should be

1. on payroll as a matter of course or
2. whether they can invoice for their services either instead of or as well as being on payroll.

I always thought the first to be true but my (new) client has been told the latter by an accountant friend. Given the totally uselss search facility on the HMRC website and inconclusive results elsewhere I am turning to people who might have a straight answer!

Thanks!

• Alex Smith
  MICB CB Dip PM Dip
  www.bookkeepingleeds.com
  
• 
  Quote
  

• # 54542
• Wed 16 Feb 2011 10:04 PM

Hi Alex

In order to help you  I would need more backgroud to the company i.e. is the director a shareholder as well.

If this is the sole job for this director then you would want to set up a payroll so they can use up their personal allowance.

You can be a director and bill the company for your services if you are in a more non exec or consulting role i.e. you hold several directorships etc.

I would advise calling the HMRC helpline with the entire background of this particular client or contacting the ICB as it really is not that straight forward and varies case to case.

I hope thios is dome help Alex

Kind Regards
Stuart

• Forum Moderator, South East & Greater London Regional Chairman
• 
  Quote
  

• # 54550
• Thu 17 Feb 2011 10:45 AM

Thank you Stuart, I'll do some more digging.....

• Alex Smith
  MICB CB Dip PM Dip
  www.bookkeepingleeds.com
  
• 
  Quote