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!
- Tax Filer - Transfering figures from partnership to personal returns 118 6
- Capital loss on cessation for a sole trader 47 1
- Small hotel - food for personal use 178 3
- Why does Aweb always take the nuclear option … 2,628 59
- Xero Pain Points 223 12
- Models, agency rules and intermediary reporting 83 1
- HMRC site down ? 88 3
- Samsung Galaxy - Tablet War 62 1
- The importance of Grammar 833 22
- Late RTI submissions on change of accountants 129 2
- VAT - How hard is it? 342 15
- Tax Return for arrivals into the UK 138 4
- New starter - tax code 125 3
- Copies of every transaction can't be OK!! 569 9
- ACCOUNTING TREATMENT FOR DISBURSEMENTS 227 3
- Childcare 263 4
- Bookkeeping - Relevant Qualifications? 224 2
- Overdrawn directors loan account. 802 19
- New .accountant domain name extension 132 1
- VAT REGISTATIONS 208 4
- Any knowledge of salesorder.com 359
- Chart of account segments; Balance sheet vs P&L 296
- HMRC RTI Filing Problem 282
- Goodwill and the Summer 2015 Budget 279
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 269
- Electric Car 220
- S222 Charge 200
- What is the best acounting software for online international retail business? 194
- Foreign Tax on Pensions 189
- Company Structure 170