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Directors loan disclosure

Micro accounts

Small Ltd Co, one director, one shareholder, keen not to over disclose.

My client has a directors loan account with approx 250 transactions going through it, divdends, advances, interest, rent.

Is it enough to show in the accounts:

On 1 January 2016, the company extended a loan to one director. This loan is unsecured and repayable on demand. Interest has been charged at 3% p.a.  The balance outstanding of £YYY at the year end has been repaid. Do I also need a table to show the movements in micro accounts - 

Opening balance




Interest charged at 3%

Closing balance

 Anyone willing to share what they do? Do I need to show the max £ of the loan during the year?  While the rules dont say I have to, Im wondering if it makes the accounts more meaningful.

Thank you in advance




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By Matrix
07th Sep 2017 18:00

I just put a sentence with the name, terms and amount of the loan outstanding at year end (and comparative) in a sentence on the balance sheet. Whether it is repaid or not goes on the CT600.

Edited to say that if you want accounts to be meaningful then don't prepare Micro accounts!

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By thomas
13th Sep 2017 15:13

No-one else preparing Micro Accounts?

I've asked my institute technical help but they 'can't advise on matters of judgement' - as useful as a chocolate teapot!

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to thomas
13th Sep 2017 15:51

I do the same as Matrix - just one sentence along the lines of "during the year the company made an interest free advance to XXX of £XXX repayable on demand" with amount outstanding and comparative. I don't give any details.

Thanks (1)
13th Sep 2017 15:47

As Matrix has said you should not opt for micro-entity accounting if your priority is to make the accounts 'meaningful'.

Does your client want meaningful accounts with greater disclosure or do they want simplicity. (OK, simplicity isn't a good word, but you get the point).

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By thomas
to andy.partridge
13th Sep 2017 16:05

The accounts will not be looked at by anyone for any reason. I just want to ensure that they are compliant and
not misleading. Simplicity is good!

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to thomas
13th Sep 2017 16:50

thomas wrote:

The accounts will not be looked at by anyone for any reason.

That's a big assumption!

I'm not sure CoHo record "hits" on your company's bit of their website.

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13th Sep 2017 16:48

Strictly speaking, every payment on the director's behalf is an advance to be reported.

I usually put something along the lines of "in common with many companies of this size ..... directors have a current account ...... impractical to disclose each transaction due to the number ...."

Then, balance b/f, highest balance, largest advance, balance c/f, maybe list advances over a certain amount £500, £1000, £10000 whatever I think appropriate.

Probably doesn't strictly fulfil the strict requirements of the Act but - hey - materiality's always an excuse.

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