LLP Members acting as Ltd Directors

LLP Members acting as Ltd Directors

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I have read before that there is a general exception for LLP members of a VC business to be treated as employees if they act as the Directors of the company into which they invest. 

I cant however find this anywhere.

Can someone point me the the direction please.

Steve

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By Steve McQueen
06th Jun 2015 14:36

Answering my own question...

Covered in two places:

EIM00730: "PAYE/NIC may not apply for an officeholder if Extra Statutory Concession A37 applies. This might be considered (broadly) where: The fees are being paid direct to a professional partnership of which the director is a member..."

 

ESM4022 - Particular occupations: consultants and other professionals: "It is perfectly possible for an employee or a director of a company to provide services quite legitimately to that company in a separate capacity. For example, the individual could be carrying on an established business as a solicitor, estate agent, accountant or some sort of consultant whereby services are supplied to the company on terms similar to those given to other customers. In these cases the payment for the services would not be income from an office or employment assessable under Schedule E/chargeable as employment income or subject to Class 1 NICs."

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