I've not dealt with this before. New client has been mismanaging his company's funds. How/where do I report report it?
Gill
Replies (5)
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s.419
Director owes more than £5,000 at the end of the tax year, which may or may not be repaid within 9 months of that date.
I'm not clear on formal reporting requirements.
Need more information
Are you concerned about tax issues, creditors
customers other shareholders employees ?
You need to give a great deal more info before anybody could assist you.
You may not have to report it anywhere
depends on the facts
Wow..
Not dealt with overdrawn loan accounts before?
I wish I had your clients!!
Dean
Free Online Helpdesk from MMI, the Surrey Accountants.
NCIS
This may not be relevant in your particular case but I'm sure you've considered NCIS in case he is avoiding paying tax on monies drawn from the company if he/she pays him/herself salary or divi's?
reporting
You need to show the overdrawn loan account on balance sheet under debtor and in notes as transactions with directors.
Also on CT 600 if he repays it before the nine
months you can leave it off CT 600.
best of luck