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!
- How can i allow my clients to digitally sign? 738 15
- Tax refunds for 2014/15 1,148 22
- Spousal transfer and PPR 699 31
- Overseas business trip - accompanied by family 59 1
- unmarried couple, two houses, one rental - CGT? 253 8
- recompense capital input 190 11
- Exports/Dispatches - non VAT registered 103 2
- Capital allowances on taxis 226 2
- CT losses carry back 93 1
- Thoughts on revenue recognition 547 17
- help guys! self employed or still company income? 161 2
- Do I have grounds to dispute our accountant’s fees? 766 19
- Deferred Tax Asset & Liability 418 12
- Where has Portia gone? 2,276 68
- Financial Advisor / Mortgage brokering 142 1
- Associated disposals - Entrepreneur's relief 184 3
- Are Sales to Germany considered VAT Taxable turnover for HMRC? 230 5
- New Client wants an Income Certificate for a Mortgage 992 22
- What shall I reduce payments on account to? 214 3
- transferring from franchisee to ltd comapny 258 5
- Services via intermediaries and new HMRC reporting requirements 798
- RTI - duplicate employee record 564
- Pensions Regulator 455
- How hard is it to reduce a code? 414
- Portia ... Where art thou 335
- Sanzar 317
- How do you do it 304
- Digital marketing focus group 300
- Kashflow balance sheet difference 274
- new investor structure 184