Company Director, Employee... and Consultant??

callmespurs

Just wondering if someone could offer some advice. As a Director of a company who is employed by that company to work for them, can they also invoice the company for work done outside of the employment role?

For example, a person is a Director of a cleaning company, they are also employed by that company as a cleaner, so that means they get a wage. Can that person then also invoice the company for strategic planning or marketing as a consultant? Work which is outside of their role as an employee.

Is something like that legal? Is it allowed in terms of tax and HMRC? Or is it risky and should be avoided?

Any advice would be much appreciated.

tacpot12

As a director of a close company, nothing is outside of their role as an employee as they define their own role. In a public company, there would be scope to work in this way but it unlikely the board would agree to it.
 

If you want to do this as a tax dodge, don’t. 

Dox

See https://www.rossmartin.co.uk/sme-tax-news/3860-directors-were-not-self-employed-consultants-too