overdrawn directors loan account

overdrawn directors loan account

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Morning.
Dla. For various reasons only just now completing the 31.03.13 accounts.
On 31.03.13 dla overdrawn say £20,000.
No profits from company for a dividend.
I understand the s455 tax etc. ND Nic issues.
Here's where I'm a bit confused. I've not had this issue before
The director wants to clear £15,000 with a bonus, and he repaid £5,000 in may this year.
Ok.
P11d were submitted, but without the dla interest on it
So, does the bonus go into last year's accounts on profit loss, and do I then have to resubmit 1213 p 35? Will the fine for an amendment to p 35?
Or does the bonus go into 1314?
Are there fines for submitting an amended P11d?
Thanks in advance.
I'm calling my tax helpline today too, but any input appreciated

Replies (4)

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By maxmc2
12th Dec 2013 09:48

i would

put it down on the payroll this year and put it down as an accrual.

If you were to add the interest back to the loan account and the director repays it then technically no BIK issue.

Could you not charge s455 this year and then look at the accounts to 31.03.14 and then put through a bonus then you would get back the s455 tax.

Thanks (1)
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By Whinger
12th Dec 2013 10:07

Excellant Thank you  

Excellant Thank you  

That's what I was thinking but wanted to double check.

I think it's the p11d issue making me nervous 

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Euan's picture
By Euan MacLennan
12th Dec 2013 10:14

You are confusing two issues

s.455 tax

The loan was overdrawn by £20,000 at 31.03.13, so you need to complete Part 1 of the CT600A pages (assuming that the director is a shareholder).  He repaid £5,000 in May and will be repaying the other £15,000 with a grossed-up bonus (of the order of £22,000) in December, so you need to enter the repayments within 9 months in Part 2 of the CT600A.  No s.455 tax will be payable.

Cheap loan BIK

It may not be strictly correct to do it retrospectively, but the simplest option now is to calculate the interest at 4% on the overdrawn balance outstanding during 2012/13 and charge it to the loan account at 31.03.13.  That avoids any amendment to the P11D and the director actually paid the interest as part of his payment in May, didn't he?

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By Whinger
12th Dec 2013 10:49

thank you Euan. that's great.

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