Submitting a P11D when P35 says that none are due.
I’m currently finalising the statutory accounts for a client and it’s come to light that the director’s loan account is overdrawn by about £12k.
As no interest has been charged/paid on this it’s reportable as a benefit on the P11D however P35s for the year have been submitted stating that no P11Ds are due.
Grateful if anyone could let me know if there are likely to be any repercussions for what, with hindsight, has proved to be an erroneous statement.
As an aside I did consider advising the director to pay interest on the loan and then calculate the s419 tax payable on the grossed up balance, i.e. loan balance plus interest. However EIM26257 states that there has to be a legal obligation to pay the interest in the year for it to be taken into account. As any agreement would be drawn up “after the fact” am I correct in assuming that the retrospective charging of interest is not an option.
Grateful for you thoughts.
- SA302's anyone?? 602 17
- High value residential property - SDLT 15% 101 1
- 2013/14 failure to submit end of year submission 344 12
- Cash in Hand 108 2
- Buy to let and capitak gain 157 4
- Busines software 148 5
- Goods Purchased for Rental 193 6
- Converting a barn for business use 184 2
- Sale of house with planning permission - tax free? 309 4
- Flat rate Vat Scheme & Vat on wholesale production of Cakes and other deserts 313 12
- HMRC overreaching its powers -again against a small surveying firm? 477 10
- are receipts needed? 609 16
- Going to need a tax, insolvency and legal specialist I think 307 3
- Bookkeping software 721 7
- Clogged Losses 282 5
- Letting relief on property transferred to a spouse 269 9
- ideas for a bonus scheme for accountants 657 10
- Charge for use of credit card - permitted 319 7
- New Built in oven - allowable as repair? 271 4
- Accounting for Bank Loyalty Rewards? 127 1
- Nil Rate Band Trust - index linked debt by way of charge over property 910
- International interest certificate 521
- NOVA 372
- Have we escaped Gift with Reservation of Benfit & Pre-owned asset charges? - Gift after benefit 322
- Management expenses for investment company 275
- Bonus Bonds 269
- Entertainer withholding tax in Australia 183
- P11D benefit received by widow 162
- EXACT ONLINE 157
- Insolvency and whistle blowing 153