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!
- Going through security 233 5
- Scientist switch to accountancy - work experience? 450 17
- Dividend Tax Petition 282 3
- Sage VAT return reports difference post reconciliation 217 1
- Bank reconciliation 246 8
- Practice software 649 14
- Financial Forecasting software recommendations please 324 3
- Sage Accounts in a mess 245 5
- Tax efficient vehicle 449 8
- Buy to let investors and the budget changes. 134 2
- Business only use of company car 195 5
- As I was saying, Its VAT question day 225 7
- Buying a business premises in a pension 160 2
- Goodwill on incorporation 500 17
- Paying PAYE by Direct Debit 347 10
- Mortgage Interest - Tax Deductible 166 2
- Retail business software/accounting system 134 2
- Tax on LLP members drawings not covered by future profits 195 9
- Certificate of Tax Deposit and APN's 107 1
- Why are so many UK accountants reticent to make use of Indian outsourcing providers? 3,299 77
- RTI Rollback to delete incorrect data 240
- Motor Traders Assistant Bookkeeping Programme queries 224
- Vouchedfor.co.uk 211
- Tracesmart/Lexis Nexis AML software? Any opinions? 199
- Web site and client access area advice 182
- Expenses Software 179
- VAT FRS percentage for sales person? 166
- Sage Compatible P60's Self Seal 159
- CTA Material 159
- Any thoughts on Capium? 154