Does a director count as an employee?

[JohnOhn]

Hi all, I had a question about employment creation...

I founded a UK company which I am a director of. Three months later I brought a friend (who is an EU/German citizen living in the UK) on as an additional director of the company to help me run it. Once we started making money, I began paying that friend a salary (and paying all related PAYE taxes to HMRC, etc). My question is, even though he is listed as a director of the company, does his employment count towards the “employment created” requirement of the T1E visa?

Additional info: his salary breakdown shows he’s is being paid at least minimum wage and working at least 30 hours per week.

So does he count as one of my employees for the visa purpose even though he is a director?

Thanks!

[Mrchaany]

Remove him from directorship and put him/her on payroll as a secretary or whatever you want and pay him minimum living wages

[JohnOhn]

Remove him from directorship and put him/her on payroll as a secretary or whatever you want and pay him minimum living wages

So you are saying a director does not count as an employee even if they are being paid as an employee?

[Mrchaany]

Yes

[JohnOhn]

B2B -

It seems like your answer isn't correct (unless its a rule from the Home Office and not a general UK employment rule).

Here it seems to say a director of a company can also be registered as an employee of the company: https://www.gov.uk/running-a-limited-co ... ed-company

[dd156]

https://www.gov.uk/employment-status/director

Being a director does not by itself make one an employee of the business, but the director can also have an employment contract with the business and be on the payroll.

[JohnOhn]

https://www.gov.uk/employment-status/director

Being a director does not by itself make one an employee of the business, but the director can also have an employment contract with the business and be on the payroll.

Hi, yes, perhaps my original question wasn't clear.

I meant: for the T1E visa is someone who is a director of my company EXCLUDED from also being a valid employee if I want to pay that person as an employee (and thus give him an employment contract; this is in addition to him being a director and being compensated through dividends for his directorship)?

As an employee I would pay him like my other employee and pay him a wage and pay all applicable PAYE taxes, pension, etc due to him/HMRC as an employee.

[dd156]

https://www.gov.uk/employment-status/director

Being a director does not by itself make one an employee of the business, but the director can also have an employment contract with the business and be on the payroll.

Hi, yes, perhaps my original question wasn't clear.

I meant: for the T1E visa is someone who is a director of my company EXCLUDED from also being a valid employee if I want to pay that person as an employee (and thus give him an employment contract; this is in addition to him being a director and being compensated through dividends for his directorship). As an employee I would pay him like my other employee and pay him a wage and pay all applicable PAYE taxes, pension, etc due to him/HMRC as an employee.

No, there is nothing in the guidance that suggests that this would be a problem. As long as he has an employment contract and is paid via PAYE, there shouldn't be an issue.

[zimba]

Anyone paid via PAYE is an employee of the company including the directors.
There is nothing specific in the rules that says you cannot use their employment however I say it is risky. I suggest you keeping him a shareholder and employee but not a director to be safe.