Maybe my brain is fugged by last minute tax returns, as I'm struggling with how to deal with this. NatWest have offered my clients (husband &wife owned Ltd Co.) a commercial mortgage / loan of £335K which will repay their domestic joint mortgage (220K) plus funding for some building work connected with their business (115K). The business (retail) and domestic house are on the same site and the couple personally own the whole site.
I can't see how I can account for the loan other than recognising the whole debt in the company's books with £115K being received as cash and £220K going to directors loan account
I don't want to upset matters as the deal being offered is at a good rate - but this is going to cause problems with HMRC in respect of CT and PAYE
Any observations or guidance appreciated
WB