As a director of an Irish LTD company, can I ..

[zod]

1. Award myself a suggestion/encouragement award (annually )?

2. Working in an office, can I expense any clothing ( suits ) or drycleaning ?

3 Using a company credit card buy something for myself and thus
A. Reclaim VAT ( albeit to the company )
B. Pay BIK on the value of the goods thus avoiding PRSI on moneys I would have had to take out (and pay both PAYE and PRSI on) to pay for said goods.

thanks

 

[ClubMan]

As a director of an Irish LTD company, can I ..

 

[Purple]

1. Award myself a suggestion/encouragement award (annually )?

2. Working in an office, can I expense any clothing ( suits ) or drycleaning ?

3 Using a company credit card buy something for myself and thus
A. Reclaim VAT ( albeit to the company )
B. Pay BIK on the value of the goods thus avoiding PRSI on moneys I would have had to take out (and pay both PAYE and PRSI on) to pay for said goods.

thanks

1. Try it and let the rest of us know how you get on (I don't think it's a good idea)
2. If they are real expenses then yes (AFAIK there is an tax free allowance for clothing for many jobs)
3. It's not a good idea to make personal purchases on a company credit card.

I suggest that you talk to your accountant. I also suggest to do not do anything that draws the attention of Revenue. Keep your nose clean and you’ll sleep better at night. Remember that when it comes to Revenue they don’t have to prove that you owe them money, you have to prove that you don’t owe them money.

 

[extopia]

>> 1. Award myself a suggestion/encouragement award (annually)?

Absolutely, but you'll have to deduct tax and prsi on it, and declare it on your income tax return.

>> 2. Working in an office, can I expense any clothing ( suits ) or drycleaning?

I don't think a suit is considered a uniform. So if you do this, you'd have to declare it as a benefit in kind. No benefit, so more trouble than it's worth.

>> 3 Using a company credit card buy something for myself and thus
A. Reclaim VAT ( albeit to the company)
B. Pay BIK on the value of the goods thus avoiding PRSI on moneys I would have had to take out (and pay both PAYE and PRSI on) to pay for said goods.

You can only reclaim VAT on business related expenditure, so no. As to the PRSI issue, I believe BIK is subject to PRSI, but could be wrong.

(post crossed with above)

 

[Purple]

>> 1. Award myself a suggestion/encouragement award (annually)?

Absolutely, but you'll have to deduct tax and prsi on it, and declare it on your income tax return.

>> 2. Working in an office, can I expense any clothing ( suits ) or drycleaning?

I don't think a suit is considered a uniform. So if you do this, you'd have to declare it as a benefit in kind. No benefit, so more trouble than it's worth.

>> 3 Using a company credit card buy something for myself and thus
A. Reclaim VAT ( albeit to the company)
B. Pay BIK on the value of the goods thus avoiding PRSI on moneys I would have had to take out (and pay both PAYE and PRSI on) to pay for said goods.

You can only reclaim VAT on business related expenditure, so no. As to the PRSI issue, I believe BIK is subject to PRSI, but could be wrong.

thanks

OK, that's more definitive than my post.
OP, just pay yourself what you can and pay your taxes.

 

[zod]

1. Try it and let the rest of us know how you get on (I don't think it's a good idea) .

I know staff suggestion schemes are tax exempt up to 5K I think, just not sure if a director is able to award himself it! ( for a splendid suggestion regarding suggestion schemes! )

2. I don't think a suit is considered a uniform. So if you do this, you'd have to declare it as a benefit in kind. No benefit, so more trouble than it's worth.

agreed

3. It's not a good idea to make personal purchases on a company credit card. Remember that when it comes to Revenue they don’t have to prove that you owe them money, you have to prove that you don’t owe them money.

Noted .. didn't know that. thanks

 

[extopia]

I know staff suggestion schemes are tax exempt up to 5K I think, just not sure if a director is able to award himself it.

The rules covering staff suggestion schemes or employee encouragement awards are outlined in [broken link removed] document.

Regardless, the Revenue Commissioners are many things, but they are not stupid when it comes to interpreting the tax laws. A director, AFAIK, is never considered to be "staff".