SE42360 - Emoluments from offices and employments: basis of assessment - the time when an emolument is received - the time at which a person must be a director for the special rules to apply

Sections 202B(3) and 203A(3) ICTA 1988

The “crediting” rule at SE42310 and the “determination” rules at SE42330 and SE42340 apply to an individual who is a director at any time in the year of assessment in which emoluments are credited or determined.

So these rules apply to all emoluments from that company in the year of assessment even where the crediting or determination occurred in the part of the year before the director was appointed, or after the director left office. They apply to all the emoluments the individual gets from the company of which they are a director either as an employee or as a director.

Emoluments could be voted in a year when the individual was not a director but for, say, the previous year when he or she was a director. In that case, the payment rules for ordinary employees apply in the year in which emoluments are voted. The position would be different if the taxpayer is still in control and is deemed to be a director for the year of receipt under SE20200. Generally there is little to be gained from attempts to exploit the director definition because the company's Corporation Tax deduction will also be governed by the payment rules for ordinary employees.