Dear All,
A freind of mine requested me to prepare set of accounts to file for a management company with 3 directors involved and one is share holder cum directors. He has been asked if he can do the proper accounts that he will get the business of the other companies in the group.
They are the directors mentioned above are directors of other companies in the group as well.
I noticed directors fees amounting to £ 5000 to £10,000 paid per year one payment amounts to more than £4000.. Large expenses have beeen reimbursed to the directors as expenses in carrying out their duties. No PAYE system appears to be in operation.
I have not committed to do the accounts as I am not convinced the way money was taken out.
Could someone explain to me ,Can an executive director be remunrated by directors fees without operating PAYE where he is a director in other companies in the group? Also how about reimbursement of expenses carried out for business and non business expenses?
How can we remunerate non executive director?
Appreciate urgent response.
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Replies (3)
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P46 / PAYE codes
The first company making a payment of directors fees/remuneration may well be outside PAYE/RTI at the levels quoted (if P46 signed/normal code given), but for the second and subsequent Director could not sign a P46 and therefore should be on BR code within PAYE.
Does seem an issue and expense reimbursements should be on P11ds unless there are dispensations in place.