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Resolution - dir loan w/o

Could anyone help me with the wording that is required in a resolution to write off a director's loan account or point me to a link.

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BIK

No idea.  But beware that any loan written off must be declared as a Benefit in Kind on Form P11D.

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Unless ...

stratty wrote:

No idea.  But beware that any loan written off must be declared as a Benefit in Kind on Form P11D.

Unless the director is also a participator (and the company is close)

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and of course......

....to the extent the loan has been accumulated by the company meeting bills on the director/shareholder's behalf the Taxman takes the view that these ought to have been subjected PAYE tax and NI when the payment was made.

No special wording is required just a board minute followed by a letter from the other directors confirming that a write off of the debt has been agreed should surfice unless the amount is significant in which case a ordinary members resolution might be appropriate.

 

 

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