How will a loan of £1500 taken from the company (and not paid back withinn 9 months of YE) by the director be taxed?
Does it need to be included as a Corporataion Tax payabale on the accounts on the year the loan was actually taken?
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Replies (14)
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Fill in the supplementary page to CT600.
But - as Paul says - only if he's a participator.
I do not
I show both the asset and liability
Both with the S455 in the title
The liability to pay arises from the action taken in the year than loan made
No idea if this is wrong in a technical sense but most of my companies are micro
BS net of the two is zero
I do not
I show both the asset and liability
Both with the S455 in the titleThe liability to pay arises from the action taken in the year than loan made
No idea if this is wrong in a technical sense but most of my companies are micro
BS net of the two is zero
Did the asset and corresponding liability exist at the Balance Sheet date ?
Or did they arise nine months later ?
What if you file the accounts, say, three months after the year end and then the participator wins the pools and repays the loan a month after filing ?
The liability arises as soon as there is an unpaid loan at the year end. The company needs to claim relief if the loan has been repaid etc within 9 months. If the loan has not been repaid at the time the return is filed no relief can be claimed. In the scenario above, an amended return is required. In practice we do not submit any such CT600 until we know whether the s455 is payable or not.
Some of our clients choose to show the asset and liability. Others choose to account for the s455 when paid. I don’t have a strong feeling either way. What I do disagree with is including the s455 as part of the P&L charge, which some here have advocated in the past.
Same here on filing
If client claims will repay then I expect it to be demonstrated that is was a real repayment, not more borrowed and a pretend repayment.
Never heard of the idea of putting on P & L
But only been active on here for 9 months or so
I may be mistaken - and apologies if I am - but I recall that Euan Maclennan, who rarely if ever comments these days, was a strong proponent of the P&L charge.
It makes sense.
But what is the actual liability? How is it calculated?
note Director=Shareholder in this case
Thank you. I had seen that, but they only give information on loans above £5,000 that's why I am confused.
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