Interest-bearing director's loan for 6 months, SA100 and CT600 treatment Interest-bearing director's loan for 6 months, SA100 and CT600 treatment
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  1. #1

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    Default Interest-bearing director's loan for 6 months, SA100 and CT600 treatment

    Hello all,

    As director to prevent some minimal resources from idling I've issued myself 6 months loan at 4%pa interest (above official rate) in May (2 payments: £8K and then another £7K next day),
    repaid it at the end of October (4 separate payments: £8K principal + £160 interest, then £7K principal and finally £140 as interest, hence it's 4%pa or 2% in 6 months)
    Technically it falls within a single Tax year from Self-Assessment perspective
    and within single accounting year for my Ltd (which ends in November)
    Therefore at the end of "personal income" year (neither at the beginning) - I don't have any loans outstanding.
    Same applies to business side: No loans outstanding at the beginning of accounting year and no loans at the end of it.
    (I'm aware of Bed and Breakfast treatment rules, thus won't take any loans for quite a time, and interest was charged for this loan above red-flag threshold)

    What (and how) should I report it to HMRC:
    1) on SA100 ?
    2) on Annual Accounts ? (generally it's Micro-Entity accounts filling but it turns out to be a bit more complicated because CT600 has all sort of mandatory fields and extra questions, which is very confusing)

    Does anyone know (or had experience) how to handle it properly in a step-by-step way?
    (amounts are hypothetical - just to have some material reference/basis for calculations, but it's definitely above £10K threshold)

    I suspect there's nothing to declare for SA, but have some concerns about CT600 filling/submission process (ways of handling and implications)

    Thank you!
    Last edited by Yuri F; 29th October 2020 at 16:20. Reason: fmt

  2. #2

    Prof Cunning @ Oxford Uni

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    Is this related to:
    https://www.contractoruk.com/forums/...threshold.html

    or this:
    https://www.contractoruk.com/forums/...loses-sep.html


    And what does your accountant tell you to do?
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  3. #3

    Prof Cunning @ Oxford Uni

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    I think you've got this whole thing FronttoBack.
    I'm perfect, in a very specific and limited way.
    Hands... out infractions
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    Does anyone know (or had experience) how to handle it properly in a step-by-step way?
    I do!
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  5. #5

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    WTFH

    It's kind of related but in a very distant way, my current case is well above £10K (and with interest).
    But yes - SA part is kind of pretty straight forward, just trying to get a second opinion on this.
    As for business accounting and CT600 side - your links don't yield much of clarification unfortunately.

  6. #6

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    Quote Originally Posted by WTFH View Post
    I think you've got this whole thing FronttoBack.
    or downsideup
    See You Next Tuesday

  7. #7

    Prof Cunning @ Oxford Uni

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    Quote Originally Posted by Yuri F View Post
    WTFH

    It's kind of related but in a very distant way, my current case is well above £10K (and with interest).
    But yes - SA part is kind of pretty straight forward, just trying to get a second opinion on this.
    As for business accounting and CT600 side - your links don't yield much of clarification unfortunately.

    And what has the professional accountant - who is qualified and paid by your company - told you to do?
    I'm perfect, in a very specific and limited way.
    Hands... out infractions
    Face... the music
    Space... between the ears

  8. #8

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    Well guys, so far you're all so cryptic and secretive waiting for someone to beg you..
    Not helpful tbh, rather defamatory.
    Thanks for trying though.

    Any useful response would be like a ray of light in this trolling darkness.


    WTFH - I'm homeless living under the bridge + school early dropout, can't afford an accountant, forced to run all by myself (PAYE/VAT, GL, PnL+BS{+CF} for CH&CT Annual filling/submissions) just to keep life interesting a bit, that's why it's micro-entity Ltd on a first place. Just like here living in a backyard shed of my mama's garden

  9. #9

    bored now

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    So you are doing stuff that HMRC will frown upon without checking how to do it properly

    Get an accountant
    merely at clientco for the entertainment

  10. #10

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    lol, I see you all combined put all efforts trying to advertise accounting industry services...
    Good job, not helping though, there's no value in this..
    Last edited by Yuri F; 29th October 2020 at 23:53.

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