Interest paid on director's loan account

Interest paid on director's loan account

Didn't find your answer?

Should interest paid by a director on his overdrawn loan account be shown as income from a non-trading loan relationship?

I've always thought the answer was yes but HMRC have just told me there is no need to separate it.

Puzzled.

Replies (3)

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By JCresswellTax
17th Jul 2013 14:07

Is it

To do with the borrowing or lending of money?

Answer = Yes

Surely it must be non-trading loan relationship income - unless there is a specific exemption for this that I'm unaware of!

Who did you speak to at HMRC and why would you believe them?

Thanks (1)
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By Stuart Jones
17th Jul 2013 14:26

HMRC

Do they ever say who they are? And I didn't believe them but I wanted to make sure I wasn't missing something.

Thanks for your reply.

 

 

 

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By JCresswellTax
18th Jul 2013 09:17

I just meant

Was it a 'technical advisor' or a front line advisor in a call centre.

If the latter, I would certainly be ignoring that advice.

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