Director providing services via PSC company

Tax and legal implications for providing director services via an personal services company

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I should probably know the answer to this question, but I'm not sure so I thought I would ask you good people.

I have a potential new client who has been asked to be a director of a company but its been suggested that he sets up his own company which acts as a corporate director and pays the company fees, which he then pays corporation tax on and basically distributes as a dividend.

I guess my concern is over the whether corporate directors are allowed (I believe they are as long as they are UK registered companies and there is at least one natural director), and I guess potentially IR35. Both are small companies so IR35 assessment would fall on my potential client. Given they would be providing director services there would likely not be an issue with supervision and control and therefore IR35 would not be an issue.

Am I missing anything here? Your input would be most welcome!

Thanks

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By paul.benny
12th Dec 2022 11:26

Kylo Ren wrote:
..its been suggested that he sets up his own company which acts as a corporate director ...

Who has suggested this and what is their rationale? Is it advice that you would give?

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Replying to paul.benny:
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By Kylo Ren
14th Dec 2022 09:09

I don't love it but I can't actually see anything wrong with it...

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Melchett
By thestudyman
12th Dec 2022 20:26

This arrangement has a foul smell to it...

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