SE21791 - Benefits: PAYE tax not deducted from director's emoluments: which directors do the special rules apply to?

Section 164(2) ICTA 1988

Where there has been a failure to deduct tax from remuneration of certain directors the special charge in Section 164 ICTA 1988 applies.

It does not apply to employees who are not directors.

It does apply to a person employed as a director of a company unless:

  • he is a full-time working director ( SE20202) or
  • the company is a charity or non-profit-making concern ( SE20210 to SE20211).

See SE11800 onwards where the failure to deduct tax is in respect of a readily convertible asset.