Is director self employed ?

Is director self employed ?

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Director is employee of company, does he/she is also classed as self employed and does he/she have to pay class 2 NI

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By ShirleyM
08th Feb 2014 14:29

Unclear what you are asking

If the director has additional self employment, then he/she will have to pay Class 2 NI, unless taxable profits of the self employment are below the threshhold.

If no additional self-employment, then class 2 NI does not apply.

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By tebthereb
08th Feb 2014 14:36

No

Salary to an employee is subject to Class 1 NIC.

Of course, being an employee doesn't exempt a director from Class 2 NIC, so if he is doing other things he would also need to consider whether he is "self-employed" by virtue of those activities.

They certainly won't be classed as self-employed solely by virtue of being a director.

If you are in doubt as to whether his work for the company makes him an "employee" or "self-employed" you should consider seeking professional advice but normally a director would be an employee and you won't get any argument from HMRC if treating them as such.

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