Hi All, Once again I haven't got clear info from my accountant regarding this and hence here is my simple question...
I need to withdraw £5k from ltd company as a director.
Company financial "year end": June 2012
As I understand, I need to pay back this loan in full before "Year end" + 9 months.
So if I pay back before March 2013 there is no charge.
But the accountant has confused me saying...
" The company would have to pay a corporation tax deposit of 25% to HMRC as a 'S419' charge, until the loan is paid back to the company. If the loan is paid back to the company before the company period end, the S419 charge is not due but the below will still apply."
So what accountant is saying is, I should pay back loan before company's financial year end, and If I don't then S419 should be declared.
Then if I pay back before March 2013, I need to contact HMRC and inform them I have paid back. Its upto HMRC to refund me whatever charge I paid when we declared S419...
I need to withdraw £5k from ltd company as a director.
Company financial "year end": June 2012
As I understand, I need to pay back this loan in full before "Year end" + 9 months.
So if I pay back before March 2013 there is no charge.
But the accountant has confused me saying...
" The company would have to pay a corporation tax deposit of 25% to HMRC as a 'S419' charge, until the loan is paid back to the company. If the loan is paid back to the company before the company period end, the S419 charge is not due but the below will still apply."
So what accountant is saying is, I should pay back loan before company's financial year end, and If I don't then S419 should be declared.
Then if I pay back before March 2013, I need to contact HMRC and inform them I have paid back. Its upto HMRC to refund me whatever charge I paid when we declared S419...
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