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Director start date or employee start date

Director start date or employee start date

A client of mine incorporated his company on 31st May 2012 so as to contract through a Limited Company (Not IR35). At that point he was still working in a permanent role and did not start working as a contractor until 15th July 2012. He will be paid monthly. I'm trying to set up his payroll and I'm asked for the Director start date and the Employee start date but I don't know which date to use. I tried to set it up as the Director start date 31/05/12 and Employee start date 15/07/12 but it won't allow me to use a Director start date before the employee start date. Can anyone please advise me as to which date to use for both? Thanks

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04th Aug 2012 12:37

A director is an office holder of the company, and my understanding is that the employment start date will be when they start receeivng remuneration.

 

Therefore, if the reuneration covers the period from 15th July 2012, then use that date.

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By alattax
04th Aug 2012 13:31

If you are looking at payroll software it will not be interested when the individual became a director per se, unless it is after the date of commencing employment.

This is so the separate directors rules for NIC can be applied from when the employee became a director.

If he is (as in your case) a director when he commences employment the date will be the same, which is the date he became employed.

 

 

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