Friend of mine is a Director of a company (Consultany), he invocied the Co, a fee for his consultancy to the company and declare in self assessment.
Is this acceptable>
Any advice will be appreciated
Thanks
Siva
Replies (2)
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No
A director cannot be self-employed by his own company except in respect of providing some support service which is not part of the company's main income earning activity - for example, a director who was an accountant could charge a fee as a self-employed person for preparing the accounts.
As to whether the director's pay is subject to the IR35 rules depends on him effectively working personally for a client of the company.