I have a company with a sole director who over many years has accumulated a credit balance on his loan account.
The director does not wish the loan to be repaid to him and has asked me to remove it from this years accounts.
I cannot think of any tax implications by doing this (although I am happy to be corrected).
Therefore is it possible to just write the loan off against reserves. Or what would be the correct accounting entries.
Also, should I make any disclosure to HMRC and or a note in the accounts.
Any advice appreciated.
Note: Although I have used this site for reference for many years, I have never posted a question before, so if this is the wrong place, format etc. Then please advise.