Self Employed vs Employed

[ArooElephanto]

Hi,

As the sole director and also employee of a limited company, do you consider yourself 'self employed' or 'employed'?

More to the point, which is correct?

This is for car insurance purposes where they're asking about employment statuses. I have in the past said self-employed as I've operated as a sole trader but now I'm unsure.

Thanks

 

[Blue Steel]

As far as I am aware your empolyed by the company, the fact you own this company is seperate.

 

[ArooElephanto]

I should note that there is no contract of employment (would that be weird in this situation?!), so I'm just employed for the purposes of being paid.

 

[ArooElephanto]

Ok I've asked around and also done some Googling at it appears that I should be classed as employed.

The best way it was summed up as as so: "If you work for the company regardless of title / role, your an employee."

I will go forward with my employment status as 'employed' but would love to hear from anybody who thinks that this is wrong.

 

[ITsoldUK]

The best way it was summed up as as so: "If you work for the company regardless of title / role, your an employee."

Yes if it is a limited company. Subject to PAYE etc.

No, if you are a sole trader. You are then working as self employed. I work for ITsold but I own it and I am a ST.

Just to clarify your message

 

[Steve Sellers]

You are not the only person who finds it confusing:

http://www.bis.gov.uk/files/file11628.pdf

Do you take money out in the form of a salary?

 

[Anna Chandley]

Some insurance companies will categorise you as self employed if you are employed by a limited company which you own. (even though you are not self employed).

I will always say that I am employed but make it clear that I own the company which employs me then they can make up their own mind as to how they wish to categorise you - if you applying online then this may be difficult to do if you can only chose between employed and self employed with no chance to provide additional info.


Anna

 

[London Bookkeepers]

You are indeed classed as employed in this situation.

 

[ArooElephanto]

I've decided to go with 'Employed'. I can then select 'Company Director' as my occupation (some even allowing you to drill down to Company Director - [type of company]'.

Makes sense to me. Lets hope they don't try to mess me around if I have to make a claim (hopefully it won't come to that though!)

Thanks for everyone's input.

 

[ArooElephanto]

Do you take money out in the form of a salary?

Yup I do the whole 'salary up to threshold and take the rest as dividends' thing.

 

[PDRD]

Does this count for getting a mortgage? Can you tell them that you are employed by 'Company A' and therefore not have to be cast out as a self-employed who they will not lend to. Or do they then go further into looking at the company?

 

[The Wages Room]

Yes you are employed as a director of the Ltd co

 

[tony84]

Does this count for getting a mortgage? Can you tell them that you are employed by 'Company A' and therefore not have to be cast out as a self-employed who they will not lend to. Or do they then go further into looking at the company?

No, for mortgage purposes your usually classed as self employed if you own 25% plus of the company.