Self Employment and Director registration

[thaicharoens]

Hi All,

I was granted T1E about a month ago from my switch from T1GE, which means that I'm already a company director.

From the Home Office staff guidance for the extension criteria, it says:

The applicant must have registered with:
• HM Revenue & Customs (HMRC) as self-employed
• Companies House as a director of a new or an existing business or member of
a new or an existing partnership - you must not award points to directors who
are on the list of disqualified directors provided by Companies House

If the applicant does not meet one or more of these conditions within 6 months of the
specified date, you can curtail their leave.

However, the Applicant guidance says the following:

You have:
(a) registered with HM Revenue & Customs as self-employed, or
(b) registered with Companies House as a director of a UK company, or
member of a UK partnership.
You must have registered within six months of entering the UK with this entry
clearance (if you provide evidence to establish your date of entry) or, in any
other case, within six months of the date your leave was granted

Note the missing "or" as the difference. Hence, I'm worried as you can't be registered as self-employed and a director at the same time (according to HMRC's website). So which guidance do I adhere to?

Thanks for your help!

[marcnath]

It is OR.

[Sha09]

So that means you cannot be registered as director and self employed a same time? What if You have two businesses, one as director of ltd company and another as a sole trader (self employed)?

[marcnath]

So that means you cannot be registered as director and self employed a same time? What if You have two businesses, one as director of ltd company and another as a sole trader (self employed)?

You can be a Director and be a sole trader at the same time. In both cases you are self employed.
From HMRC point of view, you have to register for Self Assessment and you should do that in either case

[Sha09]

Thanks for clarification marchnath

[thaicharoens]

Hi marcnath, if I pay myself all my income from the company through PAYE, and have no other source of taxable income, does one still have to register for Self assessment? As HO's requirements is either registered as Self-employed with HMRC or a company director, but HMRC says you only have to register if you have untaxed income from other sources.

[zimba]

Hi marcnath, if I pay myself all my income from the company through PAYE, and have no other source of taxable income, does one still have to register for Self assessment? As HO's requirements is either registered as Self-employed with HMRC or a company director, but HMRC says you only have to register if you have untaxed income from other sources.

NO. Self employed status is a tax status and it is not about working for yourself. This is often a big misconception that Tier 1E applicants have. A company director works for himself as he is considered the employee of his own company NOT because he is self employed.
A company director does NOT need to be registered as self employed unless he also has some self employment activity. Remember that you do NOT need a company to work for yourself. You can for example teach music over the weekends or you can be a sole trader or make money in many other ways. It is in those cases that you are expected to register as self employed with HMRC merely for tax purposes.