filing a CT600 before Director loan repaid

will be repaid within 9 months of year end.

Didn't find your answer?

Hello, hope someone could point in me the right direction.

Client has a company year end of 30 Sept 18, at the year end DLA, is overdrawn (by £6k x 2 (H&W directors).  They plan to repay by voting a dividend in April 19 (so within the 9 month repayment period). What is HMRC position on the future repayment date?  or does the DLA have to be settled before the CT600 can be filed?  My software has accepted the future repayment date.

Does anyone know HMRC stance on this?  Presumably, if the loan isn't actually repaid as planned, or goes beyond the 9 months window, an amended CT600 would need to be submitted, so filing can happen sooner rather than later?

Thoughts/clarity would be much appreciated.

Thanks

Replies (4)

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By andy.partridge
27th Oct 2018 19:42

I think it will be accepted. Quite possibly the content will be forgotten subsequently and the dividend not take place or take place but paid etc. Why not simply wait until it has been repaid? Surely that’s the sensible thing to do.

Thanks (1)
By Ruddles
27th Oct 2018 21:06

If you have to file an amended return because the loan has not been cleared HMRC would be entitled to raise a penalty.

My practice is not to file until I know that loan has been repaid/cleared.

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By lja20
28th Oct 2018 09:56

Thanks both, I know the loan will be cleared (client actually does listen), so am not worried about an amended return needed, more just understanding the process from HMRC side.
Indeed, we could wait, but client generally pays the CT liability straight away, a) it is done and b) takes advantage of the HMRC interest rate - better than the banks), this is just the first year there is an overdrawn DLA not cleared before potential filing.
Thanks for your comments, much appreciated.

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By andrew1211
30th Oct 2018 09:16

File it with a future repayment date on.....On one occasion I have then seen HMRC ask for evidence of repayment

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