Directors’ pay: payroll or freelance decision maker

Directors of any company, whether limited by shares, limited by guarantee, or community interest company (CIC), generally have to be paid through payroll.  For more in depth notes, see our factsheet Can Company Directors Also Be Consultants?

We are often asked whether a company or CIC can pay its directors on a freelance or self-employed basis.  This calculator will give you a guide as to whether and to what extent directors can be paid outside of payroll (spoiler:  in almost all cases payments to directors must go through payroll).

Directors paid as freelancers

Directors paid as freelancers

Questions and response to determine whether a director can be paid as a freelancer

Do you have a business, profession or trade outside of the company named above?
Is your business outside of the company named above a sole trade, partnership, or limited company?
Does the company named above need the specific services described?
Does the company named above buy these services from your business?

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