Directors Loan repayment date

Directors Loan repayment date

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Hello all,

Now, this companies year end is July.
A directors loan of £160,000 was taken in Sept 07, so this should be paid back by April 09 to avoid the s419 payment.

If that loan of £160,000 was paid back to the company in Nov 08, and another loan for a similar amount taken out a few weeks or a month later, would the loan repayment date now be April2010? Or, because of the close proximity and amounts of the two loans, would it be considered the same loan and therefore the repayment date would remain April 09?
Would the second loan effectively defer the s419 payment for a year?

Thank you for taking the time to read this post.

Roger.
Roger

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By User deleted
21st Nov 2008 15:33

HMRC manuals
Company taxation manual

http://www.hmrc.gov.uk/manuals/ctmanual/CTM61615.htm

Enquiry manual

http://www.hmrc.gov.uk/manuals/emmanual/em8565.htm

These two sections explain HMRC's view of what you are trying to do - if you can satisfy the second one then you may be able to get it past the Inspector.

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By pawncob
21st Nov 2008 15:05

spirit
The letter of the law seems to say you can do it.
I had a client who did it for many years, always repaying the loan before 419 fell due.
(Of course it's just this sort of thing which upsets the politicians)

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