Expenses to Director (not an employee)

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PeterSellers

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Can a company pay expenses to a Director who is not an employee (i.e. does not take a salary) and not a shareholder?

e.g. If the Director had to travel to sign forms or attend company meeting etc.

What tax liabilities/ return obligations would the director incurr from such expenses?
 
Hi PeterSellers

Would this director be a non-executive director?

Regards

Hizzy
 
Expenses that are within the civil service rates should be acceptable. The company should be able to stand over all amounts paid and the amounts paid should not be any more than would be reasonably expected so that the NE director is not out of pocket.

It is very important that adequate documentation is on file to show the basis of the payment broken down into mileage, overnight expenses etc and should be backed up with minutes showing attendance at the board meeting. Probably a good idea to have the director submit a signed claim form and have it approved by someone e.g. finance.

It would be important that it is not seen that the director is getting more than reimbursement of costs incurred as otherwise the excess could arguably be classed as director's fees and subject to PAYE/PRSI.
 
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