Sole director of limited company has overdrawn directors loan account balance at end of first accounting period. The account is overdrawn by just £276, relating to an overpayment of expenses (£179) and PAYE tax due on salary (£97). I just want to make sure I get the disclosures right, as I am not sure where the £5k de minimis limit applies, apart from being certain that there is no BIK because the loan is well within the £5k exemption. So do I need to disclose the loan:
- as a note in the statutory accounts?
- on the supplementary pages of the CT600?
The loan will be repaid within 9 months of the year end, as the director has deducted the £97 tax from her next salary payment, and the £179 overpaid expenses from her next expenses payment.
Thank you for your help.
Jenny
Replies (3)
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Yes & Yes
Yes - disclosure by way of note in both full and abbreviated accounts is required by s.413 CA 2006.
Yes - you need to complete the supplementary pages CT600A Part 1 for the advance, Part 2 for the repayment within 9 months and Part 4 for the amount outstanding.
Can the disclosure just be in the debtors notes
Ie
Debtors
A Smith Director £ 276
Other Debtors £1000
---------
£1276