Are there any risks in serving as a notional director for a friend's business

hkjohn

My friend lives in Noon Ireland but has property in Dublin which he operates via a company.

In order to minimize his UK tax situation, his accountant has told him he should appoint a notional director. based in the south and has asked me to do the honors for him.

Anyone here know if there is any potential downside to my helping him out?

Royale with Cheese

You'll be expected by revenue to submit an income tax return every year (if you're not already doing so). I've been told once you start doing this revenue will expect one off you every year even if you cease being a director and have no non paye income.

AndrewJRenko

This sounds strange. Running a single property through a company would be unusual, with lots of overhead incurred as a result.

The big question would be whether you can trust your friend to be above board in all his dealings? If not, you could find yourself on the hook.

Mick Tator

There is no such position as a ‘notional’ director. You are a director or not; if you are one, you are responsible for the proper running of the affairs of the company. In the event of any error you legally are liable and if there is any wrongdoing involving financial loss you can be made personally liable.

Being a company director is not just a casual side-gig, it is a role that requires knowledge and input.

 https://www.odce.ie/Portals/0/Directors.pdf

Gloomtastic!

You could at least insist on Directors Liability Insurance being in place to protect you financially.

hkjohn

Thanks, everyone for your advice. Decided to decline his offer.