I have inherited a company in which various benefits have accrued to the directors loan account resulting in it being overdrawn. S419 tax was paid on the amount at the end of 2009 through corporation tax. During the year 2010, £2479 of this loan was repaid, resulting in an inclaimed refund of tax of £619. The balance at the end of the year was reported on the corporation tax return, but there is nowhere to report the repayment of amounts from periods prior to the current year. During the year 2011, loans of £2217 accrued resulting in a new liabiltiy of S419 tax of £554.
How is it best to report this on the corporation tax return? I can put the new increase in loans in section 1, but I cannot report the repayments because they are for amounts from before the current year. I dont particularly want to have to tell my client that they have to pay £554 now and hope that HMRC repays £619 later!! Is there a way to offset them?