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• # 70476
• Thu 28 Apr 2011 08:12 AM

Hi,

I'm sure someone has posted a query similar to this on the forum but I have been unable to find it. I have a meeting with a potential client who is the director of his company and I suspect he is invoicing his company for his services, are there any special rules I need to consider regarding the director's of a company working on a self-employed basis?

Any advice would be greatly appreciated!

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• # 70478
• Thu 28 Apr 2011 09:06 AM

>
> Hi lady M

This is a Tax issue that should be dealt with by his accountant.

Kind regards
Stuart

>
>

• Forum Moderator, South East & Greater London Regional Chairman
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• # 70480
• Thu 28 Apr 2011 09:44 AM

Hi Lady M,
It was I who posted the other query about directors invoicing their own companies.  Stuart is correct in saying it is for their accountant to deal with the matter. 
It seemed a big issue would be that if the director is doing the type of work that the taxman would deem to be employment type work, the company will be held responsible and could incur hefty financial cost because of tax evasion.  That was one of the reasons why in our case, we were advised that the directors should stop invoicing and find another way of payment to remove the risk to the business.  But as Stuart said, best to leave it to the accountant. 
Regards,
Lindsay  

• Lindsay Williams
  www.lwbookkeeping.co.uk
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• # 70486
• Thu 28 Apr 2011 11:21 AM

Hi James

Sorry you felt my post was not helpful however this area is a minefield. IR35 does not come into play as the director is invoicing his own ltd company not a 3rd party company.

From memory a director should not bill their own company any funds taken from the company should be taken as either dividends, salary or benefits in kind to work on a self employed basis for your own limited company opens up a lot of issues surrounding tax evasion hence my short and sweet reply it is a complicated area that is outside the remit of a bookkeeper and the advice of an accountant should be sought.

Warmest regards
Stuart

Edited for spelling

Edited at 28 Apr 2011 11:39 AM GMT

• Forum Moderator, South East & Greater London Regional Chairman
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• # 70499
• Thu 28 Apr 2011 10:10 PM

Hi All,

Thank you so much for the advice. If he is indeed working on a self-employed basis for his own ltd company I will be asking for details of his accountant! Or otherwise recommend one to him as I know 2 very good accountants who I have personally worked with before.

Thanks again!

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