NIM12002 – Class 1: Calculating Class 1
NICs for Directors: Definition of Director
Regulation 1(2) SSCR 2001
Regulation 1(2) SSCR 2001 defines director to mean:
- in relation to a company whose affairs are
managed by a board of directors or similar body, a member of that
board or similar body;
- in relation to a company whose affairs are
managed by a single director or similar person, that director or
person;
- any person in accordance with whose
directions or instructions the company’s directors as defined
in (a) and (b) above are accustomed to act; and for this purpose a
person is not to be treated as such a person by reason only that
the directors act on advice given by him in his professional
capacity.
Sub-section c includes a person generally known as a
‘shadow director’. A person might not be entitled or
want to be a named director because of insolvency or commercial
reasons as well as for NICs and tax motives.
But the final part of sub-section c ensures, for example,
that a solicitor is not treated as a director merely because that
person is the company’s legal adviser.
