Directors Fees and other payments
Directors fees are liable and are to be included in the company's wages, in respect of the month in which these fees are paid or are payable.
A difference exists between working and non-working directors only in relation to allowances, and the provision of meals and quarters. Bona fide allowances paid to non-working directors for expenses incurred in carrying out the duties of their office are not treated as remuneration and so are not subject to payroll tax. Similarly, the value of quarters and/or meals provided to non-working directors is not included.
Where such allowances are paid to salaried working directors, the amount of those allowances is to be included in the wages total for payroll tax. Similarly, the value of quarters and/or meals provided to these directors is to be included in the wages total, unless those payments are reimbursements of expenses against receipts.
