Client company is owned by 3 directors with equal shareholdings. Each of them has an overdrawn director’s loan account with little possibility of repaying the amounts. It has therefore been decided to write off the loans within 9 months of year end to avoid the S419 charge.
My question is do we have to write to HMRC specifically to inform them of this or is it enough to disclose the write off on the CT600A. I read in one of Indicator’s publications that you have to write but I don’t see the point of waving red rags at HMRC unnecessarily.
Grateful for any advice.