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
Replies (1)
Please login or register to join the discussion.
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?).