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!
- Is anyone using micro entity accounts 828 13
- Electronic v printed payslips 198 3
- Directors Remuneration 2014/15 and NIC Allowance and Excel Spreadsheet 343 5
- Can anybody help withe the RTI end of year process? 745 7
- Moving from Moneysoft to another payroll product 176 3
- Increasing the personal allowance: A top priority? 1,420 50
- Fee protection 1,008 20
- Received a CIS invoice 109 2
- Payroll Software Recommendations 130 3
- PPR Sanity Check 89 1
- saturday staff 191 1
- Apologies for reposting this but first post was on Friday afternoon! 471 3
- Employee becoming shareholder - can salary be reduced with compensating dividends? 160 2
- Incorporation and goodwill 191 3
- Can a small company buy a painting as an investment? 305 3
- Industrial & Provident Societies 384 3
- Self assesment losses 379 9
- Disposal of an opted property 213 3
- Payroll systems 460 7
- View on Absolute Accounts Integrated vs PTP vs IRIS 200 3
- Xtuple 573
- Qtac payroll for bureau 396
- Confused - Professional Association a Mutual trader, or not? 348
- Domain name sale and limited company 245
- Italian friend wants to set up a UK company to reduce taxes 221
- Director legal fees in loose connection to the company 217
- Tax on damages received 193
- Multiple bodies and practicing certificates 187
- Temporary non residence and CGT on non-UK asset 156
- Accounts consolidation spreadsheet 150