Client making me a director

[Mehmeh]

Hey guys,

Been contracting with my client for a while...They have now offered me a role as a director there.

But I will continue to bill through my own LTD (at least for now, until other stuff is sorted and I get dividends etc from them).

Is it cut and dry inside IR35?

[MyUserName]

Isn't this covered by the new change for 'controlling persons' or something?

[Mehmeh]

Yes, when I was reading the "office holders" / controlled persons thing I thought exactly the same...

But I'm not too sure?

[northernladuk]

Well the controlling persons seems pretty cut and dried. As a director it would be assumed you have the power to direct the company so falls straight in to that.

There is also the issues that a directors role can't really be put down to a set of deliverables and the fact that you are moving within the client showing D&C and permiesq traits of promotion.

To be honest though, if you are working at that level in the company surely you have the nouse to negotiate yourself a better deal. I can't imagine the are offering you more money to do this so why not put a 6 figure salary+benefits on the table and go perm? A contractor in a directors position surely should be looking at billing £800+ a day which I am betting you are not. I would stick my neck out and say anyone capable of being a director would not be asking questions like this. You have to drive a company stragegy forward so if you can't work out a simple contractor situation I would wonder what is going on.

Don't want to be rude to your client but appointing a contractor as a director also appears to be a pretty daft thing to do.

Something doesn't sound right here but yes I would say you are pretty screwed IR35wise.

[SarahL2012]

Hey guys,

Been contracting with my client for a while...They have now offered me a role as a director there.

But I will continue to bill through my own LTD (at least for now, until other stuff is sorted and I get dividends etc from them).

Is it cut and dry inside IR35?

I know 2 people who currently do interim director roles & consider them outside IR35. Depends on your interpretation of office holder - the company doesn't HAVE to have a finance director, COO etc, but it does HAVE to have a company secretary so only Co Sec is an office holder (that's their opinion BTW, not mine).

But this doesn't sound like an interim role.....

[Goatfell]

I know 2 people who currently do interim director roles & consider them outside IR35. Depends on your interpretation of office holder - the company doesn't HAVE to have a finance director, COO etc, but it does HAVE to have a company secretary so only Co Sec is an office holder (that's their opinion BTW, not mine).

But this doesn't sound like an interim role.....

Not for limited companies now, unless there are different rules for PLCs etc?

[quackhandle]

okay, so expecting a few face palms but the "office holder/controlling persons" only applies to positions in your client's company?

Mentioned this to a fellow contractor in the office and he thought the same, ie it was our own ltd.

Makes sense when you realise what Ed Lester was up to.

Sorry, carry on.

qh

[malvolio]

It is a long-standing requirement that a person holding a director's position in another company must receive any remuneration for that position net of PAYE and NICs. Who pays them is irrelevant, be it the client via their payroll or YourCO, but they must be paid. The Controlling Persons garbage is about closing off an anomaly for , ermm, controlling persons* who aren't necssarily directors. IR35 isn't a consideration, it's standard payroll, pure and simple.


* "Controlling persons" are those holding an enduring post in an organisation such as CEO, Head of HR or whatever wher the post is an inherent part ofhe structure of the company no matter who sits behind the desk.

[quackhandle]

Cheers Mal, thanks for clarifying that.

qh

[Andy Hallett]

Are you going to be a (a) Company Director eg named at Companies House, or (b) a Director in title / level?

If A, make sure you take some proper advice around conflict of interest / liabilities etc.

If B, no problems

For both A&B I believe you will be caught by IR35.