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How to treat Director Loan in Balance Sheet?

The DL is paid back within 9 months after financial year end.

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Hi,

I am filing my company accounts (LTD, Micor Entity). I have one issue about the Dirctor Loan: I took a loan of 4k from my LTD Company (as Director) and paid back within 9 Months (so no Tax implications). However, I do not know how to do the right reporting when filing for the Corporate Tax. My concern is the Balance Sheet. Should I put it as Creditor but put in a comment that it has been paid back?

Please help.

Many thanks

Replies (15)

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RLI
By lionofludesch
23rd Apr 2019 10:27

If you borrowed money from your company, it's certainly not a creditor.

It's a debtor.

Include it in debtors and complete the note about directors' loans.

Are you using FRS 105 or FRS 102A ?

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By MedLTD
23rd Apr 2019 10:38

Many Thanks for your reply. I am using FRS 105.

So, even in my case where I paid it back within 9 months, since the Balance Sheet gives the picture of the Financial Year End, I need to have 4000 in Debtor (Assets), correct?

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Replying to MedLTD:
By johngroganjga
23rd Apr 2019 10:51

For the accounts you do as lion says.

The tax return is where you report that it was repaid within nine months.

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Replying to MedLTD:
RLI
By lionofludesch
23rd Apr 2019 13:51

MedLTD wrote:

Many Thanks for your reply. I am using FRS 105.

So, even in my case where I paid it back within 9 months, since the Balance Sheet gives the picture of the Financial Year End, I need to have 4000 in Debtor (Assets), correct?

By asking this, I know I'm not helping by spoon-feeding you answers.

What else don't you know ?

If your company can't afford an accountant, wind up the company because you don't have the skills to produce accounts.

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By andy.partridge
23rd Apr 2019 10:53

If you bothered to do bookkeeping, proper bookkeeping, the answer to this would be obvious.

A question back to you - how can you not include it without something else being wrong to enable the balance sheet to balance?

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By SXGuy
23rd Apr 2019 15:53

.

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By Matrix
23rd Apr 2019 17:48

I think what has been missed here is that the loan was repaid before the balance sheet date. This is my guess anyway.

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Replying to Matrix:
RLI
By lionofludesch
23rd Apr 2019 17:54

Well, the thread subtitle says .....

"The DL is paid back within 9 months after financial year end."

So I'm guessing you guess wrong.

Nothing like the hard facts of dates, though.

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Replying to lionofludesch:
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By Matrix
23rd Apr 2019 18:00

Yes I saw that but I don’t really get why it would need to be put back into the balance sheet so I assumed it had already been repaid before year end.

I don’t really care but the OP obviously does if they have been reading all the rules so should get professional advice to ensure all the disclosures are correct.

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Replying to Matrix:
RLI
By lionofludesch
23rd Apr 2019 18:14

Matrix wrote:

Yes I saw that but I don’t really get why it would need to be put back into the balance sheet so I assumed it had already been repaid before year end.

Where does he say "put back" ?

He asks if he should include a note saying it was paid back. It's the nearest I can find.

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Replying to lionofludesch:
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By Matrix
23rd Apr 2019 20:36

That was my take on it but we don’t know the full facts.

MEDltd - when is your year end and on what date did you pay back the loan?

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Replying to lionofludesch:
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By andy.partridge
23rd Apr 2019 21:11

How do you miss something that’s not there?

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By atleastisoundknowledgable...
24th Apr 2019 08:47

@OP - disclosing the loan is one of the very few FRS105 required disclosures.

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Replying to atleastisoundknowledgable...:
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By Matrix
24th Apr 2019 12:37

The accounts have been filed without the disclosure. So maybe I am right after all and the loan wasn’t outstanding at year end. Or maybe the disclosure was missed as it is a DIY job.

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