Can a director be self employed?

[Touronaut]

Hi Guys

I want to make a family member a director of my company. However, I would like him to work and pay him as self employed. Is this possible?

Thanks

 

[STDFR33]

If they are being paid for their duties as a company officer, it needs to go through PAYE.

 

[DontAsk]

If you pay him, he is an employee. How do you think that can class as self employment? Why do you think you want to pay him as "self employed"?

 

[Newchodge]

It may help if you explain what you are trying to achieve. You can pay a director through PAYE for carrying out the office of a director, without them having an employment contract. How much, roughly, do you want to pay them for their services?

 

[NicoJ]

The answer to this is yes you can pay a director for self employed services, if they are genuinely self employed and provide services to other businesses in addition to yours (as a minimum).
However, this is usually very rare circumstances and would need a thorough review of what exactly the director is being paid for.

 

[obscure]

The answer to this is yes you can pay a director for self employed services, if they are genuinely self employed and provide services to other businesses in addition to yours (as a minimum).
However, this is usually very rare circumstances and would need a thorough review of what exactly the director is being paid for.

The person is a Director of Company A. On the side they also do work for Companies B and C (unrelated to Company A).

Are you saying that this person can be paid as a self-employed for Company A (which I believe is what the OP is asking) or that they are an employee of A (and must be paid PAYE) but can work for/be paid by B & C as self-employed?

 

[Newchodge]

If someone has a business of providing Director services to Ltd companies, perhaps offering finance director services, and spends half a day at each of 10 different, unrelated companies, it is possible to be self-employed at each of the 10 companies.

 

[NicoJ]

The person is a Director of Company A. On the side they also do work for Companies B and C (unrelated to Company A).

Are you saying that this person can be paid as a self-employed for Company A (which I believe is what the OP is asking) or that they are an employee of A (and must be paid PAYE) but can work for/be paid by B & C as self-employed?

For example you as a photographer work as a self employed individual, if you undertake a photography project for Company A you can bill as a self employed individual. You can't bill for the services of running the company, as this falls under the duties of an office holder.
As I said, it all depends on what is being paid for and I wouldn't recommend it without a very robust review of what you are trying to achieve.

 

[Lawyer]

Yes, lots of directors are self employed. Plenty contract their services through their own limited company too which provides services to a variety of customers.
We are not saying it is always easy and always possible but it is certainly achievable in some situations.

Also remember there is no NI or tax if the fees are low enough.Plenty of diretors are paid a nominal stipend for turning up to a few board meetings a year.

 

[obscure]

The above are all great answers.... unfortunately they are not answers to the question the OP is asking. Yes someone who is a Director may be able to work freelance for some other companies, or even do (non-director) work for the company they are a director of and be paid for that freelance. But neither of those are the situation the OP is asking about.

I want to make a family member a director of my company. However, I would like him to work and pay him as self employed. Is this possible?

If the work you refer to is as a Director then the answer is no, it isn't possible. As a Director of your company doing work as a Director they are an employee and would have to be PAYE.

If they were doing other work not related to the role of Director it may be possible to pay them as Self Employed but it would depend on the exact situation/work being done.