Writing off directors loan | AccountingWEB

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!




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Directors' loans

Paulsoper |


Southbankdelboy |