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!
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!
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