SE21794 - Benefits: PAYE tax not deducted from director's emoluments: example

Section 164 ICTA 1988

In 1998/99 a company pays £10,000 remuneration to a director with a material interest in it without deducting tax under PAYE. ( SE21791)

In 2000/01 the company pays under a Regulation 80 determination the £2,500 tax which should have been deducted.

The director is then chargeable on £2,500 for 2000/01 ( SE21795) less any amount he reimburses the company ( SE21120 to SE21122).