Expenses claim - what date?

Expenses claim - what date?

Didn't find your answer?

I am calculating the beneficial loan interest on a directors overdrawn loan account using the actual method.  A bit of a debate in the office - do we include the expenses as a credit to the loan account on the date of the expense claim, or the date of the individual transactions making up the expense claims?

Also, gut feeling - charge the loan interest to the loan account, ie the director pays it, or make it a taxable benefit?

Replies (1)

Please login or register to join the discussion.

By JCresswellTax
24th Jun 2014 09:31

Its a judgement call

I don't believe there is a right or wrong way with this one.

You will see from previous threads on here that charging loan interest to the loan account will not wipe out the beneficial loan charge.  The interest has to be actually paid to the company.

Also, there has to be have been a requirement to pay the interest at the time the loan was taken, i.e. through a loan agreement.

Thanks (0)