Learn more about the services accountants can offer employees and directors.
If an individual is working for someone else the chances are that they are being paid via the PAYE scheme (Pay As You Earn) – the exception being if they are contracting and are outside of the grasp of IR35 rules, which would make them a self employed contractor. We will cover more about the self employed in our self employed section.
The main difference between the tax treatment of employees and directors is the way in which national insurance contributions are calculated. Employees have national insurance calculated on a ‘per pay period’ basis – so they only pay contributions based upon what they earn in each period. Directors, however, will have their contributions based upon the annual earnings as their remuneration may vary each pay period. Company Directors may choose to pay themselves using a combination of remuneration methods – so some pay take a small salary under the PAYE scheme, or as Self Employment income and then take the remainder as a dividend.
Even though it may seem that as employees are not in charge of a company they would not require the services of an accountant, there are many services an accountant can offer employees, such as:
We are a lead generation facility for accountants located across the UK. We provide our visitors with the ability to search for accountants directly or provide details of the work they require and seek out accountants looking for clients with similar circumstances. Users of this website are assured that their personal details are not distributed to more than one accountant and that accountant is then allowed to contact the user to discuss the service the accountant can provide. All data transmission on this website and administration facility is carried out under full 256-bit SSL encryption.