I have a company with large reserves, the shareholders do not wish to take out any money from the company other than to fill their BRB.
The company has 5 shareholders, all equal, all directors, one of which has an outstanding directors loan of £75,000 owe to the company. A family.
The company is not necessarily bothered about the immediate recovery of the s.455 charge on the outstanding loan but they want the shareholders to all have an equal £nil DLA balance.
The shareholders are all happy for this to be written off and I would just like to make sure I'm not missing anything.
1. DLA written off - deemed £75,000 dividend on the director's self-assessment. Does some form of declaration need to be made on the self-assessment or is it simply added it into the UK dividend box?
2. Debit Loan Write Off. Credit DLA - no CT tax relief.
Nothing else needs to be reported? No further consequences to think about?
Thank you, in advance, for any help.