Is an Office holder eligible for benefits?

If a LTD company registered director does not actually perform any duties and is not on the payroll and is therefore classed as an Office Holder, are they eligible for benefits such as company cars?

From HMRC website:

Director

Company directors run limited companies on behalf of shareholders.

Directors have different rights and responsibilities from employees, and are classed as office holders for tax and National Insurance contribution purposes.

If a person does other work that’s not related to being a director, they may have an employment contract and get employment rights.

Office holder

A person who’s been appointed to a position by a company or organisation but does not have a contract or receive regular payment may be an office holder. This includes:

  • statutory appointments, such as registered company directors or secretaries, board members of statutory bodies, or crown appointments

Comments

  • Jeremy535897
    Jeremy535897 Posts: 10,417 Forumite
    First Anniversary First Post Name Dropper
    It is up to the directors of the company to decide whether to provide benefits to a director, and being a director is itself an onerous role meriting reward. I don't think there is a problem with a company providing benefits to its directors, although theoretically if the director does nothing at all why would the company provide anything, which could result in a challenge by HMRC to a corporation tax deduction for the cost of the benefit.

    It is unwise for anyone to become a director of a company without carrying out any of that office's responsibilities.
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