Another director as employee - UK Citizen

Hi All,

I have another couple of quirky question for the gurus and members of the forum, this time from accelerated ILR perspective. Please be patient, it's a mid-long size read. I have tried to keep it crisp.

I have launched a venture in collaboration with a UK citizen, who is also a director and part shareholder in the business along with me. I am more than 50% shareholder and a director in this venture.

Information:

a) Please keep in mind that he became director at the same time as me (at the inception of the company) and before any investment is made.
b) He (UK citizen) will be paid a salary and will not have salary income from any other job. He might have dividends from his other businesses.
c) He does not bring in any investment to the business.
d) He brings in immense experience and support system.

Question 1: Will this director (UK citizen) be counted as an employee of the business and will count towards the job creation?

Further Information:

a) I bring in my capital (investment money - part of total 200k- as director's loan) to the business.
b) we (both directors) bring in some secured loan from the bank issued to the business.
b) Keeping in mind that this is a new venture and I have done only part investment yet, other jobs are now created in the business and employees hired.
c) I am planning to do rest of the investment once the venture picks up (say after 6 months from now or over the period of time but before I apply for accelerated ILR or T1E extension).

Question 2: Will the employment that this business will create say 8-10 full-time jobs over the period of time and for the duration of at-least 12 months will be counted towards job creation by me when I apply for accelerated ILR?

Thanks for your patience to read through my situation. Also, any other thoughts that you may have?

Kind Regards,
kaps84

Hi All,

I have another couple of quirky question for the gurus and members of the forum, this time from accelerated ILR perspective. Please be patient, it's a mid-long size read. I have tried to keep it crisp.

I have launched a venture in collaboration with a UK citizen, who is also a director and part shareholder in the business along with me. I am more than 50% shareholder and a director in this venture.

Information:

a) Please keep in mind that he became director at the same time as me (at the inception of the company) and before any investment is made.
b) He (UK citizen) will be paid a salary and will not have salary income from any other job. He might have dividends from his other businesses.
c) He does not bring in any investment to the business.
d) He brings in immense experience and support system.

Question 1: Will this director (UK citizen) be counted as an employee of the business and will count towards the job creation?

Yes

Further Information:

a) I bring in my capital (investment money - part of total 200k- as director's loan) to the business.
b) we (both directors) bring in some secured loan from the bank issued to the business.
b) Keeping in mind that this is a new venture and I have done only part investment yet, other jobs are now created in the business and employees hired.
c) I am planning to do rest of the investment once the venture picks up (say after 6 months from now or over the period of time but before I apply for accelerated ILR or T1E extension).

Question 2: Will the employment that this business will create say 8-10 full-time jobs over the period of time and for the duration of at-least 12 months will be counted towards job creation by me when I apply for accelerated ILR?

Yes

Thanks @robertholdon, Any other thoughts from the senior members of the forum?

Question 1: Will this director (UK citizen) be counted as an employee of the business and will count towards the job creation?

No restriction in the rules but I advise against it to be on the safe side given that you must declare the names of all other directors/partners of your business on the ILR form

Question 2: Will the employment that this business will create say 8-10 full-time jobs over the period of time and for the duration of at-least 12 months will be counted towards job creation by me when I apply for accelerated ILR?

Yes, any job created in the business you started will be counted. For accelerated ILR, you need to create min of 10 full time jobs each lasting at least 12 months

HMRC treats directors differently from employees, but it is not clear from the guidance whether HO does the same.

Thanks Zimba88, Thanks sm12 !