Correct disclosure note for director's loan FRS105

Micro entity and director's loan disclosure

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Director borrowed £20k and repaid £5k in previous year.  £15k overdrawn at year end.

Current year just ended - director repaid £5k with no further advances. 

Would a correct disclosure note for current year simply be 'the company received repayments of £5k (PY: £5k) for the outstanding director's loan'? I am assuming a note is required as the director's loan is still overdrawn.

From my understanding there is no requirement to show opening/closing balances. Do the conditions of the loan (e.g. interest rate, repayable etc) still have to be noted?


Replies (5)

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Replying to grahambonds:
By Alwaysreading
21st Apr 2023 13:54

This is slightly different in that there has been no loan taken out during the year (just the o/s loan balance b/fwd) and there has only been a repayment.

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Replying to Alwaysreading:
By Bobbo
21st Apr 2023 14:37

My reading of S413 of Companies Act 2006, specifically subsection 7, is that if there if there an amount advanced to the director at any point during the year the disclosure is required.

From your post there was an amount advanced for the entire year, thus disclosure required.

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Replying to Bobbo:
By Alwaysreading
21st Apr 2023 15:30

Yes S413(7) also adds whenever the advance was entered into. So last year had full disclosure: new loan, repayment & closing balance. So to be correct it looks like this year: opening, repayment & closing to show full disclosure.

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By lionofludesch
21st Apr 2023 15:26

Definitely need to show opening and closing balance plus, in this case, the single transaction.

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