Hello, I am in the process of setting up a CIC. As a sole director, I will only get paid for my contribution once an event has been successfully funded and delivered. Can anyone advise me on the best way to receive this renumeration. Can I be a Director and get paid as a freelancer, or do I have to set up a PAYE and add myself as an employee? Thanks in advance for any help.
I'm in a similar position and seeking advice too! We are a small arts org at the other end of the country (The Lake District) and I'm wondering how I pay myself and the other directors (we have 3 in total).
Some examples of what we do here:- www.facebook.com/artlocatesme
I'm speaking to accountants this week and will share what I learn. Regards Nick
I just had a half hour session with an accountant. They told me that the most common way to pay Directors is via PAYE, which also means that you will need to set up a pension scheme, even if all the Directors opt out of it. Bonkers. I have asked her to look into whether our Directors can work for the company on a voluntary basis, but charge for our specialist services as freelancers on specific projects as this would be my preferred route. My gut feeling is that this won't be possible, but, I'll let you know. Please do also let me know what your accountant says too.
That's interesting and yes bonkers, I hoped to have a freelance relationship with the CIC too (as i do freelance work as well). I should know more at the end of this week after I've met an accountant!
I'll share what I learn here!
Hi Aleida, I met a couple of accountants, both of who confirm we can charge the CIC for services as freelancers. They also said it's important to be really transparent and that we are meeting our community interest aims. We have 3 directors, I notice you are the sole director (not sure if this makes a difference)
Hi Nick, my accountant also confirmed this. And also said that I should mention it specifically in the Articles of Association. I am hoping to recruit more directors very soon, and need it to be clear that this is how Directors get paid. They are voluntary, but get paid as freelancers for any work provided for their specific services/talents.
On a similar note, I am setting up a CIC for selling varous creative products including my own. I was thinking that we would especially try and sell my own products, and otherwise treat myself as a normal creative person whose stuff we sell. That way, I would get an income that wasn't actually a directors PAYE, giving more room for money to go to other directors. Any thoughts on that route. Although free-lancing is possibly an idea for me....
Hi Nathan that's interesting, as we are about to do a project with Adults with learning difficulties with products as an output. Do you have any links to what you make and on the basis you sell it. Might be some mutual learning we can do? Cheers Nick. btw we are working with this designer www.charliewhinney.com
Ah. When I say products, it is more music, songs, written and spoken word, as digital downloads mainly. That's the plan.
Oh cool, good luck