Director in residence

Every so often that thorny question of UK statutory directors’ earnings comes to the fore – usually prompted either by an employer compliance review or a client query – and the answers are not necessarily easy to pin down. Now increasing trends in non-resident directors (NRDs) taking on statutory director roles in UK businesses while retaining homes and residence in their home country on commuter-style arrangements is pushing this issue forward once again.

Employment status

Directors appointed by statute – in other words registered at Companies House under the provisions of the Companies Act 2006 (CA 2006) can be either ‘executive’ (working day to day in the business) or ‘non-executive’ (not working day to day in the business having a more board-based strategic role). They are appointed to be statutory directors using the form AP01. Private companies must have at least one director; public...