Scenario:
A person who is working as a Ltd Co Director (his own company. he owns 100% share) and he is also involved full time in day-to-day activities (his only source of income). But he was drawing salary and paying class 1 NI (through PAYE) and also drawing dividends on separate vouchers (not printed on payslip)
Accountant says that because director pays class 1 NI and operates payroll through PAYE, he should not be considered as self employed as per HMRC. So, in his letter, accountant included a paragraph as below:
Now for the purposes of ILR application earnings assessment, do home office still consider this person as self employed and rejects the application quoting that accountant interpretation is wrong ?We confirm that Mr X is a full time salaried employee of "XXXXXX LTD". We confirm that Mr X is not self employed person and he receives an income by way of his salaried employment with "XXXXXX LTD". We can also confirm that Mr X pays class 1 NI contributions (Please note that "XXXXXX LTD" is registered for PAYE scheme with HMRC. Employer PAYE reference number for "XXXXXX LTD" is "AAA/BBBBBBB". Company deducts class 1 NI and tax from employees and directors salaries and directly pays to HMRC)
But the accountant insists to include above para in the letter saying that if he doesnt include above para, home office may ask to show proof of class 2 NI payment which are typically paid to HMRC by a self employed person (reference page 28 of this document)
Is this person considered by home office as self employed during his ILR application where as HMRC considers otherwise ?
Is it good to include above para in the accountant letter ?
Please suggest