Employed or Self Employed??

**Dow Jones** · 27 March 2008, 14:19

Neither Empl Nor Self-Empl

Originally posted by salazie View Post

Hi all,

When you're filling out (usually financial) application forms do you say that you're employed (by your own Ltd) or self employed? I know self-employed is a different legal entity to an Ltd, but when it's just you in the company would most banks etc. expect you to put self employed? So far I've been putting employed with my ltd as my employer but I'm not sure whether this is right or not...

Ta.

You are a Company Director if you have a Ltd Co.
Self-employed normally applies to sole traders.

**Lewis** · 27 March 2008, 14:21

Originally posted by salazie View Post

Hi all,

When you're filling out (usually financial) application forms do you say that you're employed (by your own Ltd) or self employed? I know self-employed is a different legal entity to an Ltd, but when it's just you in the company would most banks etc. expect you to put self employed? So far I've been putting employed with my ltd as my employer but I'm not sure whether this is right or not...

Ta.

I think you are right to put employed as you are not registered as Self-Employed which as you say is completely different. However some might argue you are an "office holder" and not an employee. You could maybe put Company Director in brackets or just put that down on its own.

**Lewis** · 27 March 2008, 14:23

Changed my mind. I think put Company Director and not employed. Found this which has some useful comments .. http://www.paypershop.com/phpBB2/i-a...oyee-t465.html

**BA to the Stars** · 27 March 2008, 14:26

If it is because you are applying for credit, then putting employed scores better in credit scoring models than self-employed

**ASB** · 27 March 2008, 14:54

Depends on the rules of the institution you are applying to. Often they regard controlling directors as self employed.

**TheFaQQer** · 27 March 2008, 15:55

I always put myself down as an employed managing director.

**Alan @ BroomeAffinity** · 27 March 2008, 16:36

The chances are if you put down "employed", you will need to provide payslips as proof of income; if you declare "self-employed" or "company director" you will need to provide accounts or an accountants' certificate, sometimes backed up with tax assessments. I have just spoken to a mortgage broker who told me that there is effectively no self-certified market any more so any lender will require the above proof of income. If you are employed some write to your employer for a reference - which, as director, you would need to sign yourself!!

The other problem you could experience is that lenders can understand "employed" and they can just about understand "self-employed" but they really don't get "contractor" or "freelancer".

**tim123** · 27 March 2008, 17:26

If I'm filling in a 'financial form' I put down that I am a director, but if I am filling in something else I just put down self employed.

tim

Employed or Self Employed??