My client has signed a contract of employment with Employer A that puts them under an obligation to disclose to Employer A whether they are receiving fees for 'consultancy services' from a third party.
My client is also a director of a company, receiving thus director's remuneration for their services. They would rather not disclose to Employer A that they are receiving this director's remuneration.
Therefore, is director's remuneration a fee for consultancy services? Are there any legal authorities that support this?
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Directors remuneration is pay for being an office holder. I would not deem this to be pay received from the capacity of being a consultant.
What services is your client providing to the company paying him, and what is his standing in relation to that company - i.e. is he also perhaps a shareholder of it?
Fees received in respect of the duties as a director (in this case Chair of the Board) are director's remuneration and liable to PAYE. If a director provided specialist technical advice or services to the Board/company then HMRC accept that this might be regarded as separate "consultancy" which would not be liable to PAYE.
"They would rather not disclose to Employer A ...".
Why so? It doesn't sound like an ideal employment arrangement if it's built on some degree of mistrust or concealment ab initio.
What is the concern that Employer A (no relation, by the way) has about an employee providing "consultancy services"?
I'm not an employment lawyer but would the disclosure requirement in the contract be read so literally if a legal dispute arose?