Living Wage

[john@UKCA]

Perhaps the Director has been given a Contract which makes him a worker subject to the NMW?

[Alan @ BroomeAffinity]

My accountant listed 3 or 4 options, one being NMW for those who wished to go that route but it wasn't advised.

Not sure even that makes sense tbh. The only two (under normal circumstances) that are sensible options are the LEL and the PA. I can't see the point in anything else. Although I do know of many accountants locally who insist on the use of NMW, I can't see the point in even presenting it as an option - except in a "don't to do this" scenario.

[mudskipper]

Not sure even that makes sense tbh. The only two (under normal circumstances) that are sensible options are the LEL and the PA. I can't see the point in anything else. Although I do know of many accountants locally who insist on the use of NMW, I can't see the point in even presenting it as an option - except in a "don't to do this" scenario.

Some people want to have a contract of employment for various reasons. If you have a contract of employment, my understanding is that you have to pay NMW.

[Alan @ BroomeAffinity]

Some people want to have a contract of employment for various reasons. If you have a contract of employment, my understanding is that you have to pay NMW.

Yep. Fair point.

[mudskipper]

Some people want to have a contract of employment for various reasons. If you have a contract of employment, my understanding is that you have to pay NMW.

Just gone and checked the advice from my accountant, which was that if you want to claim SMP/SPP, you may need a contract of employment, and would need to pay NMW.

[mudskipper]

My accountant has suggested I should increase my salary to £13,104 to take into account the living wage changes. Has anyone else been recommended to do this? My understanding was always that as I Director this was not something I had to worry about, as the minimum wage rules etc did not apply.

OP, do you have a contract of employment with yourCo?

[Alan @ BroomeAffinity]

Just gone and checked the advice from my accountant, which was that if you want to claim SMP/SPP, you may need a contract of employment, and would need to pay NMW.

SSP is no longer recoverable so this wouldn't be s benefit. If you don't qualify for SMP you can get maternity benefit at the same rate.

And in any event I'm almost certain that you still qualify even without NMW.

https://www.gov.uk/guidance/statutor...-pay#directors

[Alan @ BroomeAffinity]

One benefit to having a contract and therefore NMW is you MIGHT be able to claim redundancy when the company is closed.

[pjt]

OP, do you have a contract of employment with yourCo?

No.

[john@UKCA]

No.

Go back to your Accountant then and state that the living wage and the NMW do not apply to Directors with no service contract.