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Director's Loan

Mix up-help needed RE Directors Loan

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Hi,

I am not an accountant but I am looking for advice.

I have contacted a few accountants that I know and I seem  to get different asnwers from each one of them?!

During my last finanical year (June'16-May'17) I have taken Directors Loan of cca £30k. I have paid this loan back to the company, in full, in March'18.

I have not been paying any interest towards this loan.

My last accountant has reported this loan in company accounts, however, this still hasn't been reported in my self-assesment for the year 16/17 nor on my P11D for 16/17.

As this loan was reported in my annual company accounts, additional tax charge was 32.5% of the loan. My question is do i need to pay this as I have paid in full my loan to the company? If I do pay this additional charge of 32.5% to HMRC, will it be refunded back to me and if so when?

How about my self assesment and P11d for 2016/17 as the loan is now paid in full? Do I need to amend my SA & P11d? Will there be any additional tax to pay?

As I already mentioned I have asked the same question to 3 or 4 accountants and I keep getting different answers so I am not quite sure what i need to do.

Many thanks in advance.

Alex

Replies (7)

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By bernard michael
23rd Mar 2018 14:42

What does your accountant say (ie the one who is paid to advise you) ??
I suspect you are shopping around because you don't like the answers you're getting. I doubt you'll like the responses on AWEB either, which may be more forthright

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By andy.partridge
23rd Mar 2018 14:59

1. Yes you pay it and you will claim it back later
2. Yes you have a BIK for 16/17, subject to the timing of the loan.

Bet you love those answers. Are you searching for an accountant who will say No to both so that when the [***] hits the fan you can blame them?

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Replying to andy.partridge:
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By Chipette
23rd Mar 2018 15:18

Re your answer 1.
Just to be clear (as it's not obvious from the OP's query) the company pays it and the company claims it back.

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Replying to Chipette:
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By andy.partridge
23rd Mar 2018 15:45

Indeed.

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By northernmonkey
23rd Mar 2018 15:25

Your 'last', by which I presume you mean current, accountant is correct - the loan has to be shown in the company accounts and the company has to pay the 32.5% tax charge (as you didn't repay within 9 months). Your company can reclaim this when you do the May 2018 accounts and CT Return. And yes, you need to revise your company 2016/2017 P11D and SATR - but surely your accountant can do this for you!

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Tornado
By Tornado
23rd Mar 2018 16:28

The only person that can advise you correctly is the Accountant that you have engaged to assist you and who probably has all the necessary information available in order to give you that correct advice. If he/she is a qualified Accountant and has been properly engaged, then he/she is obliged to give you the correct advice.

Asking other people who are not in possession of ALL the facts is bound to result in differing views, particularly as they have no legal obligation to give you the correct advice.

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RLI
By lionofludesch
24th Mar 2018 16:00

Bu99er.

If only you'd repaid the money in February........

Whether you have a benefit in kind for 2016/17 depends on when you borrowed the money. As you don't say, all we can say is - maybe.

You definitely have one for 2017/18. However, rates are very low and you don't have to pay the interest, just tax on what the interest would've been. Depends on your marginal tax rate but we're talking a few hundred quid at worst.

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