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Thread: directors remuneration

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    directors remuneration

    Good afternoon

    I am a shareholder / Director in my company and also a employee. For the passed 7 months the company has gone through a dip and non Directors / shareholders did receive remuneration, however their remuneration was transferred to their loan account after PAYE deductions (nett only)

    My Question:
    1. On financial year end, what happens to this accumulated remuneration within a householders loan account ?
    2. Can this remuneration be written off or is the company still liable to pay each working shareholder out on remuneration not paid for the period of 7 months.
    The Company is now moving to be self sustainable after a 7 month battle to not file for liquidation.

    Regards.

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    Site Caretaker Dave A's Avatar
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    Why do you want to write off the loan accounts - especially when you have paid the PAYE on the remuneration?

    If you delay payout of the loan accounts, you may get it (your after-tax money) eventually.
    If you write it off, you're giving up on ever getting it paid out.

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    Diamond Member Justloadit's Avatar
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    Just a note as well. New legislation has something on about interest free loans, that the fact that no interest is charged, increases the profit of the company, and tax must be paid on this, on the other side receiving interest increases your income, which may incur tax.
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