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HMRC internal manual

Employment Status Manual

Particular occupations: nominee directors - ESC A37


SS (Contributions) Regulations 2001 (SI 2001 No. 1004) Regulation 27

Where a director of Company A is appointed to the Board of Company B as a nominee of Company A, and hands over his fees from Company B to Company A, those fees may be assessed on Company A rather than on the director where the conditions of the above Regulation and Extra Statutory Concession (ESC) A37 are satisfied (see EIM02500). The conditions in Regulation 27 are similar to those in ESC A37.

The Inspector dealing with the accounts of the company to which the fees are handed over will decide whether those fees are to be treated as income of that company in accordance with CT175. Any claim for such treatment should be passed immediately to that Inspector.