Directors loan account interest

Hello

 

We tend to charge daily interest in the accounts on overdrawn loan accounts . I have the following scenario on a 30/11/11 year end loan account

 

Date                £

01/12/10        NIL

23/07/10       £35,000 Overdrawn

23/08/10       £4,500   Overdrawn (Repaid £30500 on this date)

05/04/11       £4,500   Overdrawn

30/11/11       £4,500   Overdrawn

 

Am I correct in thinking that interest is charged from 23/07/10 to 05/04/11 as the loan exceeded 5k overdrawn in that period and did not go back into credit? And the period 06/04/11 to 30/11/11 no interest is due, as the loan did not exceed 5k in the tax period up until the end of the accounting year?

 

Thanks in advance

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It depends ...

BKD |
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Thanks BKD

calvinplummer |

Tax years

BKD |
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Thanks BKD

calvinplummer |

Problem clients

BKD |
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