Can a director of a company be sub contractor of his own company

[mehranmichail]

Hi
Can some one plz guide
Can a director of a company do business with his own company as CIS sub contractor, his company being contractor , and thus take payment from his company under both PAYE (as salary director) and as sub contractor payments from which his company deducts CIS as contractor?

[jerome.lane]

HMRC's stance is that a directors remuneration should all be through PAYE or as dividends. Consultancy fees, management charges and self employed charges to your own company are all regularly successfully challenged by HMRC:
see https://www.bailii.org/uk/cases/UKFTT/TC/2018/TC06907.pdf

The gap between PAYE and div versus CIS/self employed taxation is so small and the potential penalties and aggravation so large, it is never worth trying to go off the beaten track.

[mehranmichail]

Thanks a lot for feedback. Kind regards