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!