Company Directors Responsibilities in Ireland – Kevin Kelly, TaxAssist Accountants Dun Laoghaire We take a look at the areas that commonly cause confusion for Company Directors. The first thing you need to be aware of whether you are a new or seasoned Company Director is that will more than likely need to submit a self assessed income tax return by 31 October each year. Many Directors are not aware of their responsibility to do this and are surprised when they receive letters from the Revenue Commissioners telling them they are late. As well as your personal tax obligations, you also need to keep on top of your company’s deadline dates. New or first time directors are often surprised at how strictly the dates set down are enforced by the Revenue and Companies Registration Office. Penalties and fines are regularly imposed so you need to make sure you keep a note of your company’s Annual Return Date and Corporation Tax deadline. Failure to submit your Annual Return on time will not only expose you to late filing fees but you will also lose your audit exemption. This will mean you will need to have your accounts audited for 2 years, potentially costing you several thousand Euro. Another frequent question we get is how the issue of how best to withdraw money from the company. Directors should only withdraw money from the company as part of a salary, dividend, reimbursement for motor and travel expenses or repayment of a loan given to the company. You cannot simply take money from the company without contravening the Companies Acts and triggering a tax liability. When it comes to withdrawing money correctly, our advice is to seek advice. Lastly, a big issue that is often confused is the area of motor expenses. Directors can claim mileage and subsistence to reimburse them for genuine business travel but the vehicle must be in the director’s name. Its important that you keep accurate and up to date records and that you ensure that mileage and subsistence rates do not exceed the maximum rates set by the Revenue.
We regularly advise Company Directors. For more information contact us today for an initial free consultation: TaxAssist Accountants; 7 Patrick Street, Dun Laoghaire, Co. Dublin Tel: 01 9010457 Fax: 01 9010458 Email: firstname.lastname@example.org www.taxassist.ie/dunlaoghaire