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Directors' NIC

Directors' NIC

We have an LLP for whom we operate the payroll and I wonder if anyone can clarify the situation on Directors NIC treatment? Clearly, the LLP doesn't have directors but if the LLP is owned by corporate bodies (limited companies) and employs individuals who are directors of those corporate bodies, should they be treated as if they were directors of the LLP, for NIC purposes?


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13th May 2011 15:03

Directors are employed and paid by their companies, not by the LLP. They will pay director's Class1 NI on salary from the company; if they are also as individuals partners in the LLP, they may have additional liability for Class2 and Class4 NI on their partnership profit share.

Not sure how (or why) they should be employees of the LLP.

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