CAN A DIRECTOR RECEIVE A P45 AND STILL BE A DIRECTOR?

by **RJ01** on Fri Jul 09, 2010 2:57 pm

Can a director who is receiving no income from the company have a p45 and would he still be a company director but just not on the payroll?

by **robbob** on Fri Jul 09, 2010 4:29 pm

From memory i think a director should not be issued with a P45 when they leave. I think the main reason for this is that as directors use an "annual method" for calculating NI if they returned at a later date the same P11 card needs to be used or the figures would come out wrong.

by **RJ01** on Fri Jul 09, 2010 4:44 pm

What if they were not going to receive an paye income from the company ever again?

by **mullet** on Fri Jul 09, 2010 6:20 pm

It is possible to remain a director but not be on the payroll and therefore OK for a P45 to be issued. Not all directors are remunerated anyway.

by **cliffordpope** on Fri Jul 23, 2010 8:53 pm

Directors are technically office holders, not employees. We have previously had volunteer directors who were unpaid, and in fact worked full time as ordinary PAYE employees of other organisations.
We have also had staff who have in addition become volunteer directors for a period, and then reverted to being ordinary employees again. Advice was the two functions are completely different, although often in practice combined.