Reply to: Is a director/contractor Self Employed? Self assessment.

[SueEllen]

This was nothing to do with IR35 apart from looking into diversifying into non-IR35 businesses. The original question was around can you be self employed whilst also being a post holder i.e. director.

The answer is obviously "yes".

Directors don't have to be paid legally unless the board decides they should be.

There are some start-ups who get directors on board because of their name and/or experience and all the director receives is expenses. That director can have another role as employed, self-employed or non-working e.g. retired, student. Why does someone take on that role? Because it's a form of voluntary activity which is in the British mentality.

[pmasoft]

IR35 is done on a contract by contract basis.

So you can have many businesses as you want but if one of your contracts is IR35 caught regardless of whether it's in IT, marketing, gardening or lemonade stand retailing then while that particular contract is within IR35 the rest of your businesses may not be.

This was nothing to do with IR35 apart from looking into diversifying into non-IR35 businesses. The original question was around can you be self employed whilst also being a post holder i.e. director.

[SueEllen]

I am unsure if are agreeing with me or not

IR35 is done on a contract by contract basis.

So you can have many businesses as you want but if one of your contracts is IR35 caught regardless of whether it's in IT, marketing, gardening or lemonade stand retailing then while that particular contract is within IR35 the rest of your businesses may not be.

[VectraMan]

Yes that is sort of the point I was making. Being a post holder does not make you employed. You could be self employed via sole trader/partnership/LLP and NOT employed by LtdCo

I'm a Director and also employed, but by a different company.

It's entirely possible to be two different things.

[pmasoft]

You could have more than one business - one Ltd and one sole trader business.

Yes that is sort of the point I was making. Being a post holder does not make you employed. You could be self employed via sole trader/partnership/LLP and NOT employed by LtdCo

[TheCyclingProgrammer]

OK but surely I can therefore also be self employed AND a post holder? I vaguely remember that Directorships are a separate section to employment on SA

You could have more than one business - one Ltd and one sole trader business.

[SteelyDan]

Got a mate who the phrase "polish a turd" was made for. Hes got an uncanny ability to make his job and anything in his life sound better than it is. Hes a complete blagger and half of it isnt true.

So I tell him I'm the Director of a multi-national IT company with clients in several countries across Europe. And that my clients ask me to travel from country to country dealing with their own customers.

OK. England and Wales then lol. But it sounds good. Perhaps I can expand and get a gig in Scotland some time. :-)

Sounds like you and your mate are made for each other...

[northernladuk]

Got a mate who the phrase "polish a turd" was made for. Hes got an uncanny ability to make his job and anything in his life sound better than it is. Hes a complete blagger and half of it isnt true.

So I tell him I'm the Director of a multi-national IT company with clients in several countries across Europe. And that my clients ask me to travel from country to country dealing with their own customers.

OK. England and Wales then lol. But it sounds good. Perhaps I can expand and get a gig in Scotland some time. :-)

Thanks for that. Useful.

[psychocandy]

Got a mate who the phrase "polish a turd" was made for. Hes got an uncanny ability to make his job and anything in his life sound better than it is. Hes a complete blagger and half of it isnt true.

So I tell him I'm the Director of a multi-national IT company with clients in several countries across Europe. And that my clients ask me to travel from country to country dealing with their own customers.

OK. England and Wales then lol. But it sounds good. Perhaps I can expand and get a gig in Scotland some time. :-)

[pmasoft]

I was referring to the question asked in which they said typical it contractor. There was no mention of any other engagements.

If there was there could be multiple pages to complete on a SA.

Ah my question was a general question and not specific to the OP. I was trying to broaden the scope of the thread.

[Kenny@MyAccountantFriend]

Your assumption is that a contractor ONLY contracts. IR35 was a wake up call for diversification and I cannot believe that IT Contractors would not have seen this and set up other businesses.

I was referring to the question asked in which they said typical it contractor. There was no mention of any other engagements.

If there was there could be multiple pages to complete on a SA.

[pmasoft]

Really? You can't believe that people who are experts in their field and provide those services to clients on a project basis wouldn't also open lemonade stands simply to dodge spectres?

I am unsure if are agreeing with me or not

[Ticktock]

Your assumption is that a contractor ONLY contracts. IR35 was a wake up call for diversification and I cannot believe that IT Contractors would not have seen this and set up other businesses.

Really? You can't believe that people who are experts in their field and provide those services to clients on a project basis wouldn't also open lemonade stands simply to dodge spectres?

[pmasoft]

You can also be self employed as well, however if you are a director of a company it would be very rare for you to work as self employed via the same company but can happen.

A typical contractor would be employed by their company and not self employed.

Your assumption is that a contractor ONLY contracts. IR35 was a wake up call for diversification and I cannot believe that IT Contractors would not have seen this and set up other businesses.

[Kenny@MyAccountantFriend]

You can also be self employed as well, however if you are a director of a company it would be very rare for you to work as self employed via the same company but can happen.

A typical contractor would be employed by their company and not self employed.