Waive Directors Loan credit balance
A director has a loan account showing £100k credit balance in his company.
The company is showing historical losses b/f although the company is in fact profitable.
The director believes the losses and his loan account were created by some creative accounting by his previous accountant.
He wishes to waive the amount owed to him as he does not believe the company actually owes him this money and the company is having problems obtaining credit with suppliers due to the negative balance sheet.
If the loan account is written off how is this treated in P&L?
What if any are the tax implications?
- Keeping disastrous accounts 489 6
- Where has Portia gone? 5,570 117
- What do people do with signed accounts/engagement letters/tax returns? 438 12
- Help 398 13
- Can a trust benefit from PPR 665 5
- Is a new PAYE scheme needed for incorporated business? 79 3
- P11D Expenses Claims 84 1
- Sage 50 accounts 45 1
- Lost "thanks" 141 2
- Moneysoft or Sage payroll with auto enrolment? 363 7
- OMG HMRC !!!! Employ some ppl!! 825 14
- VAT Exemptions for Dance Education 173 3
- Stock of photos to capatilise 443 18
- Anyone used the firm 'More Clients 4 U? 255 6
- Practice management software 1,173 22
- What is the correct Vat treatment and rate to use to record a business stay in a hotel in the EU? 196 2
- On the high seas 197 3
- US Company charging VAT. How to account 115 1
- RTI Payroll ID 2,125 26
- Payments on account 275 4
- Services via intermediaries and new HMRC reporting requirements 861
- How hard is it to reduce a code? 452
- Sanzar 353
- How do you do it 343
- Digital marketing focus group 316
- Kashflow balance sheet difference 300
- Bed & Breakfast trade via Limited Company 215
- Fit for purpose 204
- new investor structure 203
- VAT Registration 184