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!
- Capital Gains Tax on title transfer 8 1
- corp tax software 260 4
- Opening start-up business bank accounts 152 2
- how to start a career in accounting at 34? 87 2
- Is it possible to retrospectively change the tax year that dividends were paid. 533 24
- Any Scottish members out there? 11,312 420
- Now Scotland has voted "No", when does England get to vote? 954 48
- Private portion of costs and expenses in Accounts 324 16
- Is this fraud? 527 12
- Likely interaction of new Onshore Employment Intermediaries Act with IR35 ? 74 1
- Furnished lettings criteria 269 4
- Sole trader - Normal Bank account used for business? 67 1
- VAT registration pre-incorporation- wait for TOGC or treat as sale? 155 4
- Underpaid Tax Options on SE 148 1
- Naming new company 310 6
- Saying goodbye 547 14
- QuickBooks - Separating expenses from purchases 198 4
- Has HMRC got powers to do this? 652 5
- Pension Contributions Relief 398 12
- Revaluation of investment proeprty 94 1
- Raiders of the Lost Tax File 1,284
- Chartered Accountant in County Down N.Ireland 457
- National Insurance 354
- Non Resident 273
- Cass 5 FCA Client Money Software recomendation 265
- Franchise income and costs 244
- Hands on experience of Digita 206
- Best way to take money from a business if you have unlimited EIS allowances? 157
- Employer's Helpline 153
- employment capital allowances 143