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Directors Self employed?

  • 10 posts
  • # 54885

Hi, If a director of 2 companies, in which he has 40% and 50% shares, wants to invoice the companies for work done, while also taking the minimum allowance of £ 6475 in salary from one company, will it be legal?  The director works for one company, a Health & Safety consultancy only a few times a year and for the other company he works on site during summer at events running jobs on behalf of the companies clients. Only during winter will he work in the office of the events company as an "employee" and earn the salary paid.  My concern is that he could in one year invoice the events company for more than 80% of his income and in the next year only invoice more for the consultancy role.  I got advice from ICB technical support to suggest they take a minimum salary from one company and declare the rest in dividends, but as the client asked the question as a self empoyed person about invoicing the companies, I hope someone can give me some advise specific to the question please? I can't get through to HMRC tax helpline for advise at the moment. Thank you, Lindsay

  • 10 posts
  • # 54890

Hi,  Just realised the director does not have shares in the 2nd events company he wants to invoice.  Those shares are held by his wife.  Any advise?

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