New Contract - Daily Expenses

[TheFaQQer]

I am not registered for VAT so how/Why would i be claiming the tax relief ? Claiming Expenses is what i initially asked about, but it seem's that i am able to to this anyway for the standard daily items through the Ltd Scheme

I'd be wary of referring to operating a company with limited liability as a "scheme".

Words like that tend to set alarm bells ringing in certain places.

[Snarf]

Ummm...

So I refer you to the answer I gave some moments ago:


Personally, I'd be wary of being employed by my company because of the need to pay NMW and all that fun and games that being an employee rather than an officer entails, but it;s your call. What does your contract of employment say about being reimbursed?

Minimum wage doesn't apply to directors of companies or employees who are also family members living at the same address as a director.
So, TheAfQQer - how does your ltd pay you?

Source :
https://www.gov.uk/national-minimum-...e-minimum-wage

Specifically :

"Not entitled to the minimum wage
The following types of workers aren’t entitled to the minimum wage:

self-employed people running their own business
company directors
volunteers or voluntary workers
workers on a government employment programme, eg the Work Programme
family members of the employer living in the employer’s home
non-family members living in the employer’s home who share in the work and leisure activities, are treated as one of the family and aren’t charged for meals or accommodation, eg au pairs"

[Snarf]

You shouldn't be an employee, you should be the Managing Director.

Directors are still employees.

Source:

https://www.gov.uk/employment-status/director

To save you looking :

Directors have different rights and responsibilities from employees, and are classed as office holders for tax and National Insurance contribution purposes.

If a person does other work that’s not related to being a director, they may have an employment contract and get employment rights.

[northernladuk]

Erm.. Your statement and the bolded section don't match up. You say they are, the statement says they 'MAY have an employment contract' ?????

[TheFaQQer]

Directors are still employees.

Nope - they MAY be employees, but in many cases they aren't employees.

This is particularly true in the case of companies where one is a non-executive director - I have a director's contract which specifically says that I am not an employee, for example.

[TheFaQQer]

So, TheAfQQer - how does your ltd pay you?

My company pays a stipend for my work as an officer of the company.

As a shareholder in the company, I am entitled to any dividends that the board determines should be paid out, in proportion to my shareholding.

I am not an employee of any company, so am not entitled to any employee rights from any company of which I am a director.

[Snarf]

Erm.. Your statement and the bolded section don't match up. You say they are, the statement says they 'MAY have an employment contract' ?????

Of course you're right, meant to say can be employees... Rather than implying they had to be.
Curious though what are the benefits of being a director and not an employee (in the context of being a contractor operating through a LTD?)

[Snarf]

My company pays a stipend for my work as an officer of the company.

As a shareholder in the company, I am entitled to any dividends that the board determines should be paid out, in proportion to my shareholding.

I am not an employee of any company, so am not entitled to any employee rights from any company of which I am a director.

Hi, I'm interested in the reasoning for that? Is there a benefit to that over being the sole director and employee of your company?

[blacjac]

If you are an employee you have to be paid minimum wage, along with the tax and national insurance that goes with it.

As a director, you do not.

[Snarf]

If you are an employee you have to be paid minimum wage, along with the tax and national insurance that goes with it.

As a director, you do not.

Scroll up, that's not the case.