Reply to: Employment contracts for the Company Secretary, Dir-r etc

3 months

You won't get reminders until after you have submitted something. Also I beleive you can now file null payslips if you sign up for ir online type thingy.

Re: 2 directors ?

Register for quaterly PAYE, then you only have to send a null payslip every 3 months.

great idea thanks

Re: 2 directors ?

Register for quaterly PAYE, then you only have to send a null payslip every 3 months.

Re: 2 directors ?

Nothing to stop Russians in Russia being the appropriate office holders.

Yeah I could use my sister, but its dodgy enough to have a UK Limited company with the sole director whose nationality is listed as Russian :rolleyes

I understood that it was OK these days to have only one director.

Sadly role of a secretary can't be shared by the only director :rolleyes

Unfortunately the bastard IR is now informed by Co House of a co setup and registers you for PAYE whether you like it or not. It really pisses me off having to keep sending null payslips and fill in P11D, P14 etc etc with lots of 0s.

oh sh1t, do you have to send empty payslips every month? I have not called IR yet, and have not received PAYE packs either, from what point of time would they expect me to start submitting paperwork to them (I was not planning to pay myself until next year). :rolleyes

Re: 2 directors ?

Unfortunately the bastard IR is now informed by Co House of a co setup and registers you for PAYE whether you like it or not. It really pisses me off having to keep sending null payslips and fill in P11D, P14 etc etc with lots of 0s.

2 directors ?

I understood that it was OK these days to have only one director. But the Memorandum need to say something specific.

AtW - you know that the directors / co sec do not have to be in the UK, dont you ? Nothing to stop Russians in Russia being the appropriate office holders.

Re: No

Gents - many thanks for your insightful comments!

Let me just summarise what you said so far, please feel free to correct me if I am wrong:

1) Company Director and Secretary are "the office holders", who do not require to be employed

2) I register the company for PAYE purposes and can just pay myself or the Secretary via it without having an employment contract for either of us -- this would still not make either of us self-employed

planetit: its my good friend, we agreed rate of 25 per hour, I know responsibilities are low but the guy wanted to make sure its all legally fine -- he used to be self employed and does not want to switch to self employment for few quid because it would be more trouble than its worth.

-------

This brings the question: what are the implications of registering for PAYE? Can it be delayed (don't expect Secretary to do anything for a while - perhaps I am wrong?)

thanks again guys

Re: No

Bummer. Must be a damn nuisance for people who can't find anyone willing or trustworthy enough to do it.

No

Xog - no, that's one thing that's not allowed. You cannot be a sole director and company secretary at the same time. In my own company, my wife and I are both directors and I am company secretary, and it works fine.

Re: PAYE and contracts ...

Have you checked that you actually need someone else as a company secretary?? As somebody has said above, it really is a non-existent role other than legally.

AFIK you can be both sole director and company sec. Can't be bothered to check that 100% as you can do that for yourself on Co Hse website.

PAYE and contracts ...

... are two completely separate questions.

As ASB says, a company can (indeed must) pay its employees and its office holders through PAYE if they are individuals (it's possible for an office holder to be a company or a partnership such as a firm of accountants - in which case PAYE wouldn't apply).

The office holders do not need service or employment contracts.

Simple

AtW,

As Bradley says Employment Contracts are now compulsory, but if you check with the DTI (you can probably find it on their website) you should find that they are only compulsory for Employees.

A company secretary is an office holder.
Directors are office holders.
Chairman is an office holder.

Office holders do not have to be employees (they can be though).

As to payment the fees they are paid accrue to employed earners. i.e. they are treated in exactly the same way as wages. You will need to request a tax code for your cosec (fill out a P46 I think). You will then get a tax code of "BR" if they have other employement. Operate PAYE on their fees, submit them on your P35 etc at the end of year.

HTH.

Re: payment

Atw,
How much are you thinking of paying this guy? Are you aware that the amount of work required of a company secretary (in a very small company) is precisely nothing? Most of us nominate CoSec who get paid nothing for the job (because they do no work) so don’t need an employment contract. The other way is to pay a company to be the secretary for you (some accountants will do this). It doesn’t cost very much, but they also do no work for it. Do you really want all the hassle of employing someone just to save them the hassle of sorting out the tax on this small amount of money?

payment

so how would I pay the guy when I have to then if its not employment?

Original question was to be able to pay legally and avoid making him register self employed and pay Class 2 contributions.

Re: Re:Employment Contracts

Agree with silicondale. Whoever said otherwise is talking bulwarks.