# Can a director invoice the company, instead of going through PAYE?



## mirmick (14 Oct 2011)

Can a director of Ltd company invoice to company for his/her services instead of getting salaries? Does it matter if director is also share holder or not?

Would appreciate response.


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## Gekko (14 Oct 2011)

No - Payments should be dealt with through the PAYE system.


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## sean.c (17 Oct 2011)

This post has further information:

http://www.boards.ie/vbulletin/showthread.php?t=2055249358

AFAIK, directors fees are only acceptable if the director does not have a contract of employment and only for those duties as a director (e.g. attending agms I suppose).  I might well be wrong even then.

If you're trying to dodge PAYE, tough...   I'd had the same thought....


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## T McGibney (17 Oct 2011)

sean.c said:


> AFAIK, directors fees are only acceptable if the director does not have a contract of employment and only for those duties as a director (e.g. attending agms I suppose).



You would be on very dangerous ground trying to argue that one at a Revenue or ODCE audit.

As regards the boards.ie thread you linked, I would disagree profoundly with the following statement:

"I thought all directors are independant of co - if he is non-exc  director. No deduction as he is not ee - consultant - therefore he  should organise his own tax"


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## sean.c (19 Oct 2011)

T McGibney said:


> You would be on very dangerous ground trying to argue that one at a Revenue or ODCE audit.



I agree, for what it's worth.  If the OP wants to try that one one, good luck to him.


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## capnhand (19 Oct 2011)

Hi 

Sect 185 Companies Act 1963 prohibits the making of tax free payments to directors;

*185.*—(1)  It shall not be lawful for a company to pay a director remuneration  (whether as director or otherwise) free of income tax or of income tax  and sur-tax or of sur-tax, or otherwise calculated by reference to or  varying with the amount of his income tax or his income tax and sur-tax  or his sur-tax, or to or with the rate of income tax or sur-tax except  under a contract which was in force on the 31st day of March, 1962, and  provides expressly, and not by reference to the articles, for payment of  remuneration as aforesaid.

 (2)  Any provision contained in a company's articles or in any contract  other than such a contract as aforesaid, or in any resolution of a  company or a company's directors, for payment to a director of  remuneration as aforesaid shall have effect as if it provided for  payment, as a gross sum subject to income tax and sur-tax, of the net  sum for which it actually provides.

 (3) This section shall not apply to remuneration due before the operative date or in respect of a period before the operative date.

Regards

capnhand


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