Can a director invoice the company?
stefanboro
Registered Posts: 187 Dedicated contributor 🦉
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.
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.
0
Comments
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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?0 -
That helps immensely. Thank you.
PS - Loving your twitter pics, particularly what I assume is a charity run pic haha :thumbup1:0 -
stefanboro wrote: »PS - Loving your twitter pics, particularly what I assume is a charity run pic haha :thumbup1:
Stalker..!0 -
Good
PS I have no idea what you mean -_-0 -
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.0 -
deanshepherd wrote: »Stalker..!
Pot kettle?0 -
Dean thats a very good example and kinda explains it all.0
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deanshepherd wrote: »Hahaha.. it's true. You're my screensaver!0
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deanshepherd wrote: »Hahaha.. it's true. You're my screensaver!
Moving on....... :rolleyes:0
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