Alan Pink highlights some pitfalls in the rules relating to the timing of director’s remuneration and suggests how to circumvent them.
In the past there was a very free and easy regime as far as the payment and timing of director’s remuneration was concerned.
In the mid 1980’s, it was common practice for clients’ company accounts to be in arrears, sometimes by many years, and for the ascertainment and accounting for remuneration to take place a long time after the accounts were strictly due to be completed. Advisers weren’t bound in the same straitjacket of rigid deadlines as is the case now.
It was perhaps because things were so free and easy – excessively so in the Inland Revenue’s view – that rules were introduced in the late 1980’s to tighten up both when director’s
