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Directors current account, disclosure

Directors current account, never overdrawn. Presentation in Micro accounts submitted to Co Ho

In the past providing the directors current account had not been overdrawn in the year it was my practise not to disclose in accounts submitted to Companies House. With a figure ranging from £1,300 to £7,000 it could be said to be material to the company.

Is it a legal requirement to disclose the opening and closing balance and movement. This is not an interest bearing loan to the co.

 

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18th Mar 2019 13:58

No, not if a creditor.

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18th Mar 2019 15:06

Here's the disclosure template.

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18th Mar 2019 17:36

Your probably breaking GDPR if you do overdisclose!

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to atleastisoundknowledgable...
19th Mar 2019 09:09

atleastisoundknowledgable... wrote:

Your probably breaking GDPR if you do overdisclose!

To be fair, you're probably breaking something GDPR related just getting up in the morning.

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By johnt27
19th Mar 2019 13:19

Quote from Financial Reporting Faculty of ICAEW:

Small entities applying Section 1A are required to disclose material transactions entered into with their directors and owners holding a participating interest in the entity that have not been concluded under normal market conditions. Therefore, particulars would need to be disclosed if a loan from either a director or shareholder had been interest-free or at a below-market rate, if material.

The exemption to not disclose credit balances, referred to by others, is mistaken as it is relevant to the requirements to apply FV to interest-free or below-market rate loans.

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to johnt27
19th Mar 2019 13:28

Depends on interpretation of 'normal market conditions'.

Most lecturers advice is that it often is normal market conditions in small companies for a director / participator to have a loan account to the company with no interest.

Also there is a further exemption, in certain circumstances, not to apply Fair Value.

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