As is often the case leaseholders are often slow to "volunteer" to act as a director
In my client company a director and his wife (non director) work many unpaid hours for the benefit of all
Other leaseholders mostly appreciate the effort put in and wish the couple to be rewarded financially
It has been suggested that a honorarium or salary be paid.
However this "reward" is dressed up it seems to be caught by RTI?
To avoid RTI etc I had thought,subject to whatever is in the lease,of suggesting that payment of monthly service be deferred.I suppose that would be forbidden under pain of death by HMRC etc
I wonder if anyone has any ideas to reward those who undertake what is often a thankless task and often not acknowledged by other leaseholders
Many thanks
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It is irrelevant that it is a property management company
Honoraria in general are payments to otherwise unpaid office holders. As they are payments for the efforts put in by the office holders, they are earnings subject to both PAYE tax and NIC.
If the director and his wife have other jobs/pensions or if the amounts exceed the NI LEL, the company must register for PAYE and once it has a scheme in existence, it must file RTI reports. This would seem to be a classic case for an Annual Scheme under which you only have to make the one report in the month in which the honoraria are paid.
Benefit of all? Really?
At the risk of going off subject ...my experience of dealing with the director of flat management company / residents association in the community of flats where I used to live was that he did it to reward himself and his friends.These residents assocations are often little empires where self important pocket emperors glory in their power to misuse other peoples' money. Where I used to live he relied on apathy ,let flats and a small cabal of residents who benefited from his criminality!
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