A client new to us has run a PAYE scheme for several years for staff and active directors, but it has had a non-exec type director who has no contract of employment and is paid £3000p.a. They have always excluded him from PAYE scheme on the grounds he is not an employee.
Have looked at HMRC's guidance and it repeatedly makes references to being an employee, but the only alternative seems to be self-employed. It also says helpfully that you may be an employee for tax purposes but not in law, which I know is true, but none of the cases I can find on that are relevant in this circumstance. Does anyone have any guidance a to where to look for a definitive answer?