Director service agreement

[ASB]

No opinions?

Quite a lot actuall.y See here. http://forums.contractoruk.com/threa...tml#post210202

[VectraMan]

I'm sure 99% of us have no such thing (or have ever heard of it). It seems a bit of a minor worry compared to IR35.

[liley]

None knows?

Sorry for late respond. I was away. It is all about director's salary. When paying 5035 per year and rest of profit withdraw as dividends. In case of tax control, taxman can argue that salary was not enough to cover life expenses and can insist on treating dividends as salary = more tax and NI to pay. If you have director'e service agreement you can agree on board meeting every year a director's fee (salary) and it can be 5035 this year. On the other hand, if director is not only office holder but a worker, the National Minumum Wage is playing a role here. ....but what if we state that he is working part time at NMW?

What is better: do have service agreement or not to have one? Can I use director's service agreement, when director is actually a worker or does it need to be employment contract in this case? Does anyone know?

No opinions?

[liley]

Do have or not to have?

why does one need Directors agreement
Is it a requirement now ?

Sorry for late respond. I was away. It is all about director's salary. When paying 5035 per year and rest of profit withdraw as dividends. In case of tax control, taxman can argue that salary was not enough to cover life expenses and can insist on treating dividends as salary = more tax and NI to pay. If you have director'e service agreement you can agree on board meeting every year a director's fee (salary) and it can be 5035 this year. On the other hand, if director is not only office holder but a worker, the National Minumum Wage is playing a role here. ....but what if we state that he is working part time at NMW?

What is better: do have service agreement or not to have one? Can I use director's service agreement, when director is actually a worker or does it need to be employment contract in this case? Does anyone know?

[andy]

why does one need Directors agreement
Is it a requirement now ?

[Accountancy Solutions]

Hi,

We can offer you two types of Directors agreement. One if you are paying yourself minimum wage and one if you are paying a smaller directors fee. We can send you these for £25+vat

[Flubster]

I've got some in my boot...

[Sockpuppet]

ebay?

[liley]

Hi,

Where can I find cheaper Director's service agreement? I went through a few websites and they charge around £50 per document. Is there any cheaper place to buy it?

Regards

Liley