<p>As a <a href="https://goforma.com/limited-company/what-is-a-limited-company" target="_blank">limited company</a> director, you're classed as an office holder. You aren't automatically an employee at your company<strong>-</strong>even if you're the sole director and only person working in the business.<br></p><p>It's isn't mandatory to be set up as an employee at your new company. However, there are benefits to doing so if you aren't employed elsewhere, as you'll be able to take advantage of your tax free allowances.</p>
Accountant For A Limited Company
Do I need to be set up as an Employee in my new Company?
A UK limited company director is legally an office holder rather than an employee, so setting up a PAYE scheme is not mandatory at incorporation. Many directors still register as an employee of their own company to take a salary that uses the personal allowance, builds state pension qualifying years, and offsets corporation tax. PAYE is required once any salary above the Lower Earnings Limit is paid.
