Is a director/contractor Self Employed? Self assessment.

[Derben]

Hi,

I'm a typical I.T. contractor, director of a LTD Co, tax efficient PAYE, working on proffesional service contracts, etc.

I have started to complete my own Self Assessment this year, based on submissions from previous accountants.

I've noticed that on the SA form, the question that asks 'Are you Self Employed', one account ticked 'yes' and another ticked 'no' (on previous submissions).

Which is correct? Is a director/contractor classed as Self Employed or are they two different entities (as far as SA is concerned)?

Thanks for advice.

[Kenny@MyAccountantFriend]

If a director of a Ltd company you are employed by the Ltd company and as such not self employed.

[AJ1982]

IMO employed by your limited company, so employed.

Self employment is where there is no Ltd company and you work through your own name. (Says O Level in Business Studies)

I always consider myself employed.

[pmasoft]

If a director of a Ltd company you are employed by the Ltd company and as such not self employed.

A side question: Would that still apply for someone who is a director, i.e. post holder BUT not paid a salary i.e. on PAYE

[Kenny@MyAccountantFriend]

You would state on the SA that you was a director of the company on the employment pages but would have no income to declare if not paid via PAYE.

[pmasoft]

You would state on the SA that you was a director of the company on the employment pages but would have no income to declare if not paid via PAYE.

OK but surely I can therefore also be self employed AND a post holder? I vaguely remember that Directorships are a separate section to employment on SA

[Kenny@MyAccountantFriend]

You can also be self employed as well, however if you are a director of a company it would be very rare for you to work as self employed via the same company but can happen.

A typical contractor would be employed by their company and not self employed.

[pmasoft]

You can also be self employed as well, however if you are a director of a company it would be very rare for you to work as self employed via the same company but can happen.

A typical contractor would be employed by their company and not self employed.

Your assumption is that a contractor ONLY contracts. IR35 was a wake up call for diversification and I cannot believe that IT Contractors would not have seen this and set up other businesses.

[Ticktock]

Your assumption is that a contractor ONLY contracts. IR35 was a wake up call for diversification and I cannot believe that IT Contractors would not have seen this and set up other businesses.

Really? You can't believe that people who are experts in their field and provide those services to clients on a project basis wouldn't also open lemonade stands simply to dodge spectres?

[pmasoft]

Really? You can't believe that people who are experts in their field and provide those services to clients on a project basis wouldn't also open lemonade stands simply to dodge spectres?

I am unsure if are agreeing with me or not