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Directors


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance

Directors


Produced by a Tolley Employment Tax expert
Employment Tax
Guidance
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Most of the rules concerning tax on employment income and National Insurance apply to company directors in exactly the same way as they do to general employees. Unless otherwise stated, when the guidance notes in this module talk about 'employees' this includes both directors and employees.

The rules on the national minimum wage (NMW) / national living wage (NLW) do not apply to company directors unless they provide work or services to the company under a contract of employment (see the National minimum wage ― overview guidance note).

This guidance note is concerned with the instances where special tax or NIC rules apply to directors.

Income tax

Who counts as a director?

Although in many cases it is obvious that an individual is a director, eg because their job title says that they are, there is a definition in the legislation on employment benefits that includes a range of people who may not normally be described as directors. It specifically includes anyone who manages the affairs of a company alone, is a member of a board of directors or similar

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  • 12 Jan 2024 16:40

Home/ Tolley Tax Guidance/ Employment Tax / PAYE for employees

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