Contractor Among Contractors
Not true. HMRC guidance says self assessment is required for company directors, but legislation does not. Has been discussed extensively on AccountingWeb. It depends on other factors.
Originally Posted by LucidDementia
OP should take accountant's advice on this and other questions. It may be things can be structured in a way to avoid self-assessment, and that may be worthwhile doing given the relatively small amounts in the company.
It is certainly permissible to pay either, both, or neither directors a salary, though the amount of salary could come under scrutiny if it is paid to a barely-participating director and the amount seems out of proportion to the company's income.
If one person isn't bringing funds in or doing anything much in the company, and is paid a salary in excess of 50% of the revenue, I'd think HMRC would look dimly on that. But the whole thing should be run by an accountant who has full understanding of when SA is required and when it isn't -- many accountants will just say, yes, if you are a director you have to file SA. Find one who knows what they are about.