Can a director invoice the company?

stefanboro

I am reading conficting opinions on this matter.

Can a director invoice the company he is appointed to either by another limited company or as a sole trader?

I know that it is possible but dependant upon circumstances. I am just not sure what circumstances in particular, whether it is done via a company or director as a sole trader makes a difference and whether or not a contract should be in place between the director and the company for this arrangement.

Any guidance is always massively appreciated.

Stefan.

Monsoon

Broadly speaking yes, if it is unrelated to the trade of the company or the directorship. Usually, no a director can't. Typically, any invoices raised will either be from an unconnected business, or in a consultancy role that's nto directly related to the trade. Yes, I would put a contract in place and a meeting minute to cover your bases.

Let me give an example:

Director of Ltd Co that runs a computer repair shop, and the director is also a repair technician.
He cannot invoice the company as a sole trader for:

His time manning the shop
His time repairing computers
Anything to do with running the business or being a director.

Let's say he is also a solicitor. He could invoice for legal consultancy, for example.

This is proving to be a bit of a crap example, sorry Partially because I've never really found a true example where a director can legitimately invoice his company as a self employed person, as it happens very rarely.

Does that help a little?

stefanboro

That helps immensely. Thank you.

PS - Loving your twitter pics, particularly what I assume is a charity run pic haha :thumbup1:

deanshepherd

stefanboro wrote: »

PS - Loving your twitter pics, particularly what I assume is a charity run pic haha :thumbup1:

Stalker..!

Monsoon

Good

PS I have no idea what you mean -_-

deanshepherd

Here's another example..

I'm an accountant. Let's say me and my wife also run a cafe. My accountancy business operates the payroll for the cafe on the same terms as any other client of mine and I bill accordingly. No problem.

If the terms are different because of my connection then it is not acceptable to invoice as a sole-trader.

If the director is being remunerated as a 'consultant' with their own service company then you have all the usual IR35 questions to contend with. Best avoided in my opinion unless this is perhaps a business angel type non-executive director.

Monsoon

deanshepherd wrote: »

Stalker..!

Pot kettle?

mc25

Dean thats a very good example and kinda explains it all.

deanshepherd

Monsoon wrote: »

Pot kettle?

Hahaha.. it's true. You're my screensaver!

Monsoon

deanshepherd wrote: »

Hahaha.. it's true. You're my screensaver!

]That is truly terrifying :001_unsure:

stefanboro

deanshepherd wrote: »

Hahaha.. it's true. You're my screensaver!

Moving on....... :rolleyes: