New client took out a personal mortgage to introduce to company to purchase a new factory.
Asset recognised on balance sheet with corresponding amount in directors current account.
Historically the accountant has debited the annual interest charge and credited the annual mortgage interest to accruals.
Repayments of the mortgage have been classed as drawings with the interest accrued for seperately.
Technically as it has been accrued for seperately and not credited to the directors current account then the interest hasn't been paid? And this would explain why no ct61s have been declared?
Is any one able to confirm that the above is viable? If that's the case would the ct61 come into effect when the accrued interest is charge to the current account and effectively paid? Also would the director then have the right to offset the mortgage interest from the previous years against the interest declared on their personal tax return?