My question may be a little different as I am based in Jersey so we pay Social over here and not NI.
What I wanted to check is I work for for a limited company who have 3 directors, one of the directors social (NI) contributions is now classed as class 2 which is our self employed contribution, so whereas before he was classed as Class 1 (which is the same as a company employee and the contribution was deducted from his salary each month with the company being liable for a further 6.5% on top of that amount) but now he is class 2 he is on a fixed monthly contribution which is quite a lot higher than class 1 contribution which is billed to us and is payable quarterly.
So what I wanted to know is, who pays his social bill, is it the director himself personally, or is it the company? or maybe the company pays a share? I dont know if there is a legal way it should be worked out as every other company I have worked for the company just pays their class 2 social bill however due to there being other directors I dont know if this is different, especially as the others directors are not class 2 ?
Hi Keri
Here on the mainland being a director /shareholder of a limited company does not mean you are self employed. You can own a company AND be self employed as well. So, if a person has NI as a self employed person then that bill his his, personally and should not be put through as a business expense to a limited company.
Also you can be. Director of a company without being a shareholder, so this title can muddy the waters somewhat.
Question is....what is the legal status of this person/the company in Jersey? Then legally what is the position of the liability with the revenue....sounds like it's personal from what you say, but you need to do some digging with regards to Jersey Law. Or perhaps put the question to the Accountant.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
