Directors loan overdrawn

Directors loan overdrawn

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Am I correct in thinking that there is no P11D issues if the loan is below £5000? I understand that if this amount is still outstanding 9 months after the end of the financial year that 25% will be payable. If the loan is not repaid by a dividend and is written off, I assume tax and ni payable. Could someone please tell me if this is correct.
jm

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By AnonymousUser
04th Apr 2006 12:48

succinct
Yes, that seems like a reasonable summary of the position.

Don't let the clients think that they can do this every year though. HMRC will smell a rat and ask for a detailed breakdown of dates and amounts advanced etc (and who could blame them?).

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