NIM12008 – Class 1: Calculating
Class 1 for Directors: Fees received by other companies: No formal
right to appoint a director
Regulation 27(1) & Regulation 27(4) SSCR 2001
Regulations 27(1) and (4) SSCR 2001 exclude directors fees where
there is no formal right to appoint the director but there are two
differences to regulation 27(3) (
NIM12007):
- there is no reference to income tax so the
payment must form part of the chargeable profits to corporation tax
only
- a control test is included so fees will
only be excluded from Class 1 NICs liability if the director or
other connected persons do not control the first company. For the
definition of control, see
NIM12009.
