P35 and Proprietary Director

[mickeyg]

A company with one Shareholder/Director and also that same person is the sole person receiving remuneration from that company.
Am I right that for P35 purposes the return is "Nil" and the details of the remuneration to that Director/Sole Employee is not disclosed in the P35??

 

[T McGibney]

No, you're totally wrong. Directors remuneration must be included. Omitting it will land you in bother.

 

[mickeyg]

Tommy, I would have thought like you but the reason I asked is because I came across this quote in a Revenue Guideline to P35 which indicates otherwise!

So I am still confused!!

 

[T McGibney]

??? The piece you quoted addresses a situation that is totally different than the one you outlined in your opening post.

 

[Steven Barrett]

Get your accountant to do it for you. Too easy to make errors in DIY'ing it yourself. An accountant can do it in their sleep.


Steven
www.bluewaterfp.ie

 

[GabbyTheKing]

The quote above just indicates that a return must be filed if a director is on the payroll. If you are getting a regular salary it is always the case that you would put it through on a normal P35 Return. However in practice if after completing the accounts the accountant judges to elect an additional salary or a salary in general you can submit a supplementary or amended P35 after the deadline. I have never seen the Revenue come after interest or charges in my time anyway and to be honest I think it would be very backward of them to do this in any regard as the directors are chargeable persons and should have until the October deadline to get their accounts sorted. Has anyone else seen interest charged in such a case? I believe S996 covers this to a good extent. One could argue in the case of an overdrawn directors account that the salary was taken before the year end however this is a technical argument and not a bad one to be having.

 

[T McGibney]

However in practice if after completing the accounts the accountant judges to elect an additional salary or a salary in general you can submit a supplementary or amended P35 after the deadline. I have never seen the Revenue come after interest or charges in my time anyway and to be honest I think it would be very backward of them to do this in any regard as the directors are chargeable persons and should have until the October deadline to get their accounts sorted. Has anyone else seen interest charged in such a case? I believe S996 covers this to a good extent.

Hi, I saw this happening in one case last year. Thought it ridiculously harsh.

 

[GabbyTheKing]

I'm sure they did but with 996 and the guidelines-for-charging-interest-on-late-payment.pdf they should have been afforded 6 months IMO.

Under the close company leg on S438 it effectively gives you 6 months to repay an overdrawn account. Although it does say supply of goods or service in the normal course of business.

S996 also gives you 6 months of leniency however payments elected after 6 months of the year end will be subject to interest from the month after the year end. I think these are both kinda linked in theory.

Up to 6 months after the year end I think would be worth querying. They differ so much between one and the other however its hard to keep up.