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How do we treat a Company Director who is also employed in another firm.

Hi,

Please I have a new client who is the sole director of a Limited Company. Moreover in the year he works 'tactically' in a marketing company and get paid on a weekly basis on his NI and with pay slips. Most times his weekly pay is below the tax threshold and he doesn't pay taxes. The old accountant lumps his payment from the tactical campaigns with his salary as a Director to compute his accounts (CT & Self assessment). Is this right? 

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By pauld
04th May 2012 12:50

yes

.

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04th May 2012 17:17

does that mean?

The "Tactical" earnings are being paid to his company?  I am not sure I understand the question. 

If he is receiving payments from two different employers they need two different pages on his Self Assessment Return.

I presume that he is paying basic rate tax on his salary from his own company, otherwise there is a potential problem with PAYE deductions if his allowances are being used against the second job.

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04th May 2012 17:56

Keep company and director tax returns separate

"The old accountant lumps his payment from the tactical campaigns with his salary as a Director to compute his accounts (CT & Self assessment). Is this right? "

None of this makes sense. There are the director's tax return and the company accounts and tax return. They are two different personalities,

You prepare the company accounts and tax - ignoring any wages from the marketing company.

Then you have to prepare the director's tax return which, from the information provided, should consist of two sets of employment pages - one for each employer as Paula said. The director may also get dividends from one of the companies. 

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