Payments to directors

Payments to directors

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I seem to recall that directors need to be paid through the payroll for services they provide to the company (ie they can't be paid through their own personal company).

Does anyone know if this is the same for non-exec directors? I am struggling to find anything about it on the HMRC website.

Thanks very much.

James
James S

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By AnonymousUser
15th Jun 2006 14:57

Whatever title you use....
Prima facie, a non-executive director is an employee just as much within the PAYE system as the night watchman. Conceivably, he/she may be doing something other than attending Board meetings, such as conveyancing and drawing up contracts for the company -- this as a solicitor with his/her own practice. Then it can certainly be argued that this is not the type of work a director does and the relevant fee that is charged is not PAYE-able because it is distinct from remuneration paid for being a member of the Board.

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