Writing off directors loan
Apologies if this has come up before I tried a search but could not find anything.
Husband and wife shareholders have overdrawn loans of around £7000. One person is also a director. Both were drawing salary and dividends.
Company not trading at the moment so no further funds expected in near future but company being kept active as trading to be resumed at some point.
Can the loans be written off to the P+L and if so how are they categorised on the P+L?
I know there is no CT deduction. Would the loans be treated as dividends in the shareholders hands rather than under paye.
The debit to the P+L would cause the BS to be negative - would this be a problem?
Replies would be greatly appreciated!
- Can a company claim R&D relief under both the SME and large company schemes? 57 1
- CIS and Xero 255 1
- Mortgage Reference 845 12
- AMAP on borrowed car?? 193 7
- Retrospective VAT Query 123 2
- property capital gains 395 4
- VAT joint margin scheme arrangement 82 1
- Chargeable Event - life insurance bond written in trust 120 2
- FHLs and Entrepreneurs Relief 283 8
- Client gets a penalty and being threatening! 863 9
- Tips on meals 558 5
- Private doctors - Ltd company vs partnership 1,331 15
- S.455 Tax again 451 9
- Overdrawn directors loans and insolvent winding up 189 3
- Closing down loss-making company 794 15
- Stumped - IHT 611 8
- Can any cloud accounting package cope with operating a Foreign Branch and UK Head Office? 160 1
- Overpaid In Employers NI - RTI EYU for hundreds of employees 499 3
- Entrepreneur relief and deduction of Amortisation of Goodwill Pre2002 417 14
- co-operatives & Societies 132 1
- ACCA Shenanigans subject of EDM 980
- Members in Public Practice 594
- Oplex Careers CPD 363
- Payroll manager and the cloud 290
- Is the APN valid 240
- Treatment of EIS relate back? 236
- Institute of Customer Services 235
- Kashflow payroll 227
- Class 4 NI due on 2 self employments 223
- Continuity of Practice 206