Am I employed or self employed?
Discussion
genuine question - I own a limited company together with two other directors. I am the Managing Director and the largest single shareholder, but overall the other two together own more shares than me and so effectively have control of the business. In terms of the law am I self employed (as I own a big chunk of the business) or am I employed by the Ltd company?
Is this to do with being furloughed?
Two dental labs which supply us are both one-man businesses, operating as limited companies.
Both technicins pay theselves a wage, but each has taken advice from their relative accountants and the opinion in both cases is that they could not furlough themselves.
Of course you may be thinking of something of something else, so sorry if this is irrelevant.
Two dental labs which supply us are both one-man businesses, operating as limited companies.
Both technicins pay theselves a wage, but each has taken advice from their relative accountants and the opinion in both cases is that they could not furlough themselves.
Of course you may be thinking of something of something else, so sorry if this is irrelevant.
matjk said:
Don't know how true this is but i was told by HSBC that if you are a large share holder in a Ltd company that you also work for , credit worthiness is effectively worked out as if you were self employed.
So although you are an employee they don't count it as such
I’ll confirm that for you. I’m in a similar setup to the OP and when organising my mortgage with HSBC they said I had to be classed as self employedSo although you are an employee they don't count it as such
RB Will said:
matjk said:
Don't know how true this is but i was told by HSBC that if you are a large share holder in a Ltd company that you also work for , credit worthiness is effectively worked out as if you were self employed.
So although you are an employee they don't count it as such
I’ll confirm that for you. I’m in a similar setup to the OP and when organising my mortgage with HSBC they said I had to be classed as self employedSo although you are an employee they don't count it as such
As usual, it is often a simple case of ‘what works out worse for you’ and that’s applied in everything
fooman said:
1.Ltd company owner on PAYE - you can be furloughed.
2.Ltd company owner paid dividends only - you cannot be furloughed.
3.Sole trader / self employed - can be furloughed on separate scheme to PAYE furlough.
3, is not quite accurate. Self employed/sole traders can get a grant under the self employment income support scheme. They are not furloughed and can carry on working if they want. 2.Ltd company owner paid dividends only - you cannot be furloughed.
3.Sole trader / self employed - can be furloughed on separate scheme to PAYE furlough.
Skellum said:
Is this to do with being furloughed?
Two dental labs which supply us are both one-man businesses, operating as limited companies.
Both technicins pay theselves a wage, but each has taken advice from their relative accountants and the opinion in both cases is that they could not furlough themselves.
Of course you may be thinking of something of something else, so sorry if this is irrelevant.
Are they still working? They cannot be furloughed if they are still working, this may change. Two dental labs which supply us are both one-man businesses, operating as limited companies.
Both technicins pay theselves a wage, but each has taken advice from their relative accountants and the opinion in both cases is that they could not furlough themselves.
Of course you may be thinking of something of something else, so sorry if this is irrelevant.
Gixer968CS said:
Venturist said:
Then you’re employed by the Ltd.
Your directorships and shareholdings are a separate thing.
Thanks for that, that is what I thought but could to have it confirmedYour directorships and shareholdings are a separate thing.
No idea why and it seems they don't either? (I certainly never told them I was) but they won't/can't change it on their records and wouldn't accept that I didn't receive any self-employed income and so told me that they would have to put in £1 as self-employed income?
catso said:
I'm in a similar situation; director of Ltd company - not self-employed & never have been in the 40 years that I've been working however, last year whilst sorting out my self assessment I discovered that HMRC had 'decided' that I was also self employed and were asking me questions regarding this.
No idea why and it seems they don't either? (I certainly never told them I was) but they won't/can't change it on their records and wouldn't accept that I didn't receive any self-employed income and so told me that they would have to put in £1 as self-employed income?
Well at least you'll get a grant for £2.40No idea why and it seems they don't either? (I certainly never told them I was) but they won't/can't change it on their records and wouldn't accept that I didn't receive any self-employed income and so told me that they would have to put in £1 as self-employed income?
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