All directors are either employed earners if they have a contract of employment or are treated as such if they hold an office with ‘earnings’ (prior to 13 May 2014 ‘general earnings’) chargeable to income tax under ITEPA 2003. However, this does not necessarily mean that all the earnings of a director with no contract are automatically within Class 1: in Allen v Minister of National Insurance (Minister’s Decision M59 of 1959), a director who was also a self-employed woodworker had self-employed earnings from his supplies to the company.

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