Editorial team AccountingWEB.co.uk
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Any Answers Answered: SEISS and director's loans

With tax returns now done and behind us, TaxTV's Giles Mooney and Tim Good unravel two questions from Any Answers forum on SEISS and directors loan where the issues cropping up around the topics pose further conundrums. 

4th Feb 2021
Editorial team AccountingWEB.co.uk
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To view the full questions and AccountingWEB reader answers click on the links below:

2020-21 SEISS and cash basis

The first question this month relates to the self employed income support. The AccountingWEB reader said, "SEISS income is taxable but I'm not sure it will be classed as business income for the purposes of loss relief. Will they be able to claim their 2020/21 business losses sideways against the SEISS income without going to the lengths of moving to the accruals basis?" 
But the more interesting question is relates to the income for pension purposes. 

Director's loans - can I get a second opinion?

The second question comes from an anonymous business owner who writes: "In my first year (in addition to the £10k share capital), to keep the business afloat to cover expenses and rent in desperation, I paid directly from my person bank account to the business bank account much needed cash to cover expenses." 
The user wants to know if they can take that money out again without paying PAYE or national insurance. There is no problem with that but as Giles Mooney points out, the answers from AccountingWEB readers were fascinating.  
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