Hi all
I have a question regarding a directors loan I am paying back. My last company accounting period finished end of July 2015. I had an outstanding directors loan of £3,500K.
I paid off £3K in November leaving an outstanding amount of £500 which I intend to pay off this week .Unfortunately I am suddenly now in a position where I may need to take a further directors' loan of £5K. I am aware of the HMRC rules around bed and breakfasting but I wanted to confirm my understanding:
If I was to take a directors loan of £5K this would need to be paid back by end of March 2017 but the outstanding £500 from my last directors loan would need to be paid back before the end of March 2016 to avoid having an overdrawn directors account and incurring further penalties. If I repay the £500 of my directors loan before the end of March from my directors loan for my last trading period, then it would effectively been considered as having been paid off?
Is my understanding correct?
Many thanks for your time
Kay
I have a question regarding a directors loan I am paying back. My last company accounting period finished end of July 2015. I had an outstanding directors loan of £3,500K.
I paid off £3K in November leaving an outstanding amount of £500 which I intend to pay off this week .Unfortunately I am suddenly now in a position where I may need to take a further directors' loan of £5K. I am aware of the HMRC rules around bed and breakfasting but I wanted to confirm my understanding:
If I was to take a directors loan of £5K this would need to be paid back by end of March 2017 but the outstanding £500 from my last directors loan would need to be paid back before the end of March 2016 to avoid having an overdrawn directors account and incurring further penalties. If I repay the £500 of my directors loan before the end of March from my directors loan for my last trading period, then it would effectively been considered as having been paid off?
Is my understanding correct?
Many thanks for your time
Kay
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