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NO directors Loan account declared on CT600

NO directors Loan account declared on CT600

Last minute client has come forward. 

In company accounts ending 31 Dec 2011 DLA overdrawn by £13K. The director did not include herself in P35 calculations for 5th April 2012 but submitted for staff, even though during the year she took out £22k from the company. Small portion (£1k approx) is mileage and other incidentals.

CT600 submitted in Sept 2012 with DLA in debtors and no declaration and no payment of 25%.

My advice is resubmit CT600 and pay the 25% and await fines from HMRC. How much are the fines likely to be? I assume that there will be penalties for the 25% and the lack of P11D benefits.

Any other advice greatly appreciated.

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By BKD
30th Jan 2013 13:48

Hold on a moment

It is true that the CT600 is incomplete without the participator loan pages.

But is it possible that the loan was repaid by 30 Sep 12? In which case no s455 tax.

As for the P11D benefit, is it possible that interest at the official rate was charged (and paid) in respect of the loan, thus avoiding the benefit?

Thanks (1)
30th Jan 2013 13:59

... and a moment longer!

"during the year she took out £22k from the company. Small portion (£1k approx) is mileage and other incidentals."

You seem to imply that the £21k was (presumably untaxed) salary not reported on the 2011/12 P35, but perhaps it could be treated as dividends out of the taxed profit or at least, £8k of it which was not treated as a loan.

Thanks (1)