Overdrawn directors loan, paying interest and P11D

Is a P11D required

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Hi everyone

I'm online today with regards to a small Ltd co client who has an overdrawn DLA.

£6k at the beginning of the accounting year (1st April) and £22k at the end of the accounting year (31 March).

I am calculating interest at HMRC's rate on the loan by applying the average rate throughout the year (£14k) and posting to the accouts.

In this instance, is there still a requirement to file a P11D if there is no other reason for a P11D to be filed? I appreciate that if interest is charged to the director then there is no BIK, but wondered if others reading this would still go through the procedure of filing the P11D form?

Many thanks in advance for any answers

Replies (7)

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By Ruddles
23rd Mar 2023 14:36

First things first - is the director actually paying the interest?

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Replying to Ruddles:
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By mph2014
23rd Mar 2023 14:57

Hi - the director will be paying the interest yes

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Replying to mph2014:
By Ruddles
23rd Mar 2023 15:16

If the interest paid amounts to at least that charged at the Official Rate there is no beneficial loan therefore nothing to report on P11D.

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Replying to Ruddles:
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By mph2014
23rd Mar 2023 15:27

Thanks for the feedback - I've just been advised by Vantage (tax fee protect tax advice line) that a P11D should still be filed, documenting the benefit, and recording that the benefit was 'made good' - this seems like an additional/unnecessary filing doesn't it?

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Replying to mph2014:
By Ruddles
23rd Mar 2023 15:43

mph2014 wrote:
I've just been advised by Vantage (tax fee protect tax advice line) that a P11D should still be filed,

Call them back and tell them that Ruddles (and HMRC) says that they are wrong.
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Replying to Ruddles:
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By Paul Crowley
23rd Mar 2023 18:47

Brilliant
We do not do many P11ds
Only one e-car so far, but a second client is looking to get one
A director volunteering for ERNIC on a gym fee seems daft to me

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Replying to Ruddles:
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By frankfx
24th Mar 2023 13:17

Ruddles wrote:

mph2014 wrote: I've just been advised by Vantage (tax fee protect tax advice line) that a P11D should still be filed,
Call them back and tell them that Ruddles (and HMRC) says that they are wrong.

What are the odds that the Vantage person is former HMRC too?

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