High Clarity Accountants

TAX TIP OF THE WEEK – As a director of a Ltd Co could you benefit by also being a self-employed contractor to it?

Generally, any work you do for your Ltd and you are paid for will count as employment earnings or dividends.

However, if say the work was sufficiently different to your normal duties (say giving the offices a lick of paint) and you negotiated the terms of the work with the other directors then any payment can be classed as self-employed income.

So why bother, the self-employed income would also be taxed wouldn’t it?

Yes, but the company would save on employers NI and you could reduce the tax by being able to claim any expenses incurred in completing the work.

Hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist https://bit.ly/2YQbhvr

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