Directors Loan repayment s455 IRIS

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Hi 

We have an overdrawn directors loan account brought forwards into the latest accounting period, which was then repaid in full within that accounting period. 

How would you reflect this on the Corporation Tax Return and claim the refund please? 

IRIS are instructing me to reduce the loan bf amount on the CTR to £NIL, and then to insert notes to the CTR explaining the brought forward balance and the repayments = £NIL now.  AND to tick the repayment box on the CTR.  If this is right, what is the point of the L2P electronic form which enables you to claim s455?   

My colleague's strategy has previously been to go back and amend the CTR for the previous CTAP, showing the loan as repaid after 9 months after the CTAP.

Neither seem right.  I feel I should be able to show the full correct amount of loan bf into the CTAP and then show the amount repaid during the year. 

TIA. 

 

Replies (6)

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By Paul Crowley
28th May 2024 15:32

Was the loan repaid within 9 months?
Which IRIS, elements or proper IRIS? Their explanation sounds like a workaround.
We use IRIS and have never needed to call them about this. If you needed to call them then it sounds like there is a flaw.
Have you done the recent update?

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Replying to Paul Crowley:
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By anonacc
30th May 2024 09:52

Hi
We use proper IRIS Accountancy Suite. I agree it sounds like a workaround, I'm not sure we never used to have to faff around like this. How do you do it? Thanks.

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Replying to anonacc:
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By Paul Crowley
30th May 2024 11:47

Just enter date of repayment as far as I remember, in year of repayment.
Separate matter to make the reclaim, which I leave to my partner. Online claim I think.
We do not usually file until 9 Months after if client intends to repay simply because it is such a pain trying to get the money back.

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By Ruddles
28th May 2024 16:18

It’s quite simple. The refund has got nothing to do with the tax return. Claim for refund is made separately in writing either by letter or using the dreadful L2P form. You then simply book the refund against the s455 debtor in the accounrs (assuming that is how the s455 payment was treated, ie not treated as part of the tax charge)

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Replying to Ruddles:
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By anonacc
30th May 2024 09:54

Hi
That's what I thought, and I appreciate the confirmation. So my only other problem is getting it into IRIS correctly without faffing around with the previous year closing balances or this year's opening balance. What IRIS has suggested is to amend these figures to get the current year return right, but it means if we ever look back we won't be able to reliably track what happened to the loan which seems bonkers.

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Replying to anonacc:
By Ruddles
30th May 2024 12:24

I don’t know anything about Iris so you would need to explain exactly what it is or isn’t doing.

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