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overdrawn directors current accounts paid off

a company director overdraws his current account with the company in 1 year and pays s419 tax.

the next year he pays off the current account and becomes eligible to charge the company interest,

do you claim back the s419 tax by amending the earlier ct600?-(although the current account balance is the same and repaid in the next year)

or:

is it [ossinble to claim a s419 tax credit? in the year the current account was paid off?

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By twj4789
01st Aug 2012 12:38

You are correct...

you have to amend the CT600 from the previous periods showing the loan account as being repaid.

As a practice we charge an additional fee for this.

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What  is the date of the

What  is the date of the repayment?

If it was repaid before the date that CT was due in the accounting period in which it was repaid, then the claim should be made on that CT600.

 

If it was afterwards, then it should, as you say, be done by amending the Ct600 of the period in which the loan was repaid, not the ealier one?

 

See HMRC manual

 

http://www.hmrc.gov.uk/manuals/commanual/com53180.htm

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03rd Aug 2012 17:02

What is the date of the repayment?

What  is the date of the repayment?in the second period when there was no s419 tax? thats why i get confused- can you put a minus figure in the s419 ct600 box?

If it was repaid before the date that CT was due in the accounting period in which it was repaid, then the claim should be made on that CT600.

 

If it was afterwards, then it should, as you say, be done by amending the Ct600 of the period in which the loan was repaid, not the ealier one?

 

See HMRC manual 

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01st Aug 2012 17:52

Never amended tax return

I've always written a letter.

HMRC regularly miss request on tax returns. It seems weird amending a tax return. I would only do that if the tax return was wrong. I think that's what you mean, though. Say you submit a tax return 6 months after the end of the period but the loan was repaid 8 months after the end of the period. It makes sense to amend your tax return then.

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01st Aug 2012 21:43

If you write a letter rather that re-do the PY CT600, (asking for a repayment) then you will need to write 9 months & 1 day after the accounting period in which the loan was repaid. If you write before then they will just tell you to write again (annoyingly!)

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01st Aug 2012 21:48

True

Yes, I wrote a letter before 9 months and 1 day and I had to write another one later. It takes them a month or two to respond anyway.

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By blok
02nd Aug 2012 08:25

.

I always write a letter.

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02nd Aug 2012 09:11

Me, too

I always send a letter but I calculate the repayment myself and attach the computations.

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