NIM12002 - Class 1: Calculating Class 1 NICs for Directors: Definition of Director
Regulation 1(2) SSCR 2001
Regulation 1(2) SSCR 2001 defines director to mean:
- in relation to a company whose affairs are managed by a board of directors or similar body, a member of that board or similar body;
- in relation to a company whose affairs are managed by a single director or similar person, that director or person;
- any person in accordance with whose directions or instructions the companys directors as defined in (a) and (b) above are accustomed to act; and for this purpose a person is not to be treated as such a person by reason only that the directors act on advice given by him in his professional capacity.
Sub-section c includes a person generally known as a shadow director. Aperson might not be entitled or want to be a named director because of insolvency orcommercial reasons as well as for NICs and tax motives.
But the final part of sub-section c ensures, for example, that a solicitor is not treatedas a director merely because that person is the companys legal adviser.