Company Director - Should I be Worried About Return?

But if it is your tax liability why should it not come from your bank account? Out of your own money? Which presumably you have already taken as drawings from the company, which is a separate legal entity to you?

Information that you receive from people who do not know your personal circumstances is seldom reliable.

"duirt bean liom go duirt bean lei" - or a woman told me that a woman told her.

But if it sounds like you could save a few bob, we all love it!

Can I suggest that that you sit down with your accountant and ask him/her to talk you through company affairs and your own personal affairs? So that you have an understanding of the difference between company money, company tax and personal money and personal tax?

mf

The difference between company/personal funds I have no issues with.

My concern comes from a discussion with an accountant who should have had enough information on my situation to assess it. His take was that my tax should be paid from company funds, not personal. The payment to myself should be a 'net' payment. Paying myself a 'gross' amount in the way that I did is operating like a sole trader. Is this correct? Can a limited company director do this?

Yes you can gross up the directors current account balance and the company can pay the tax.

Your accountant should have discussed this option with you.

My accountant did discuss it and said that you could do it either way. I'm really trying to double check this.

You say that "the company can pay the tax". Is it also true then that the person (i.e. director) can pay the tax?

The company, your employer MUST apply PAYE regulations to your salary. Therefore the company must deduct the tax and Prsi from your gross salary and pay that to Revenue, when due, and pay you, the employee, only the net.