Can a director of a self-managed freehold company charge management fees?

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    #16
    Originally posted by eagle2
    ram – directors are employees of the Company and directors’ remuneration should be declared to HMRC and PAYE applied. If you had failed to declare the income for tax purposes, the Company and its directors would be liable for any tax which was payable.
    I was not employed by the company. It was a voluntary agreement by Leaseholders.
    This was made clear.

    Also, no tax is payable on wages of £ 800 per year.
    taxable income is the amount you earn above the personal allowance (£11,850 for 2018-19) and any other reliefs you are eligible for.
    I was not employed in any other capacity, therefore no tax payable, but other directors of other properties may, as you say, have to disclose this income, therefore you add 20 % to the money you want, to pay the tax.

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      #17
      Ram – If by voluntary agreement, you mean that there was no agreement with the RMC and payments were made directly by the leaseholders to yourself, then I agree that you would be responsible for paying any tax. If you were appointed by the RMC, PAYE should have been operated. It may well be that a tax code would have been issued which would have resulted in no tax being paid but the RMC is not entitled to make that assumption.

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