Share this content
10

Loan to Employee/shareholder who is not a Director

Loan to Employee and shareholder who is not a Director

Didn't find your answer?

I am trying to understand the rules for Directors loan and who this should be reported against. 

A family business which is a close company is taking a directors loan for the main director and a second loan for the wife who is a employee and shareholder.  

From the company point of view it is clear the S455 applies to both loans https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm61505

However from a personal point of view as the wife is not a director, does her loan get reported against the director her husband as she is receiving the loan as a connected person to him. 

Or would the loan get reported in her own P11D?  I am trying to find some legislation to state the correct treatment. 

I am unclear if the wife's loan as an employee and shareholder still gets reported against her personally or will both loans go on the directors P11D.   

Replies (10)

Please login or register to join the discussion.

Psycho
By Wilson Philips
27th Feb 2019 15:50

As she is an employee, the presumption is that she is obtaining the loan by reason of her own, and nobody else's, employment.

Connection, aacomment__f- s.> a>Connection, aacomment wQxeus, employment.

Connection, aacment.ConnectioaacoapsinesbMarke5Connectioaa1cmen . t__foo4(hents__

ConnectioaacoapsinesbMarke5Co\G Vype-terlt/fss=aomment-group">

>

ma-bra-item cho" />
(eveninlin24b> ei9-toos aW:e node node-press s-card--press" id="node-171289" data-product-impression="true" data-product-id=""h_link- hxm-171 aacfssion. 8i hxm-171 aacfssion. ols(comments__title ultra-bold">Replies (10)