Director's Loan Account

Discussion in 'UK Accountancy' started by fred, Nov 12, 2013.

  1. fred

    fred Guest

    When I was dealing with the management of a Director's Loan Account a
    few years ago I used to make sure that the account never went more than
    5k in deficit, I think to avoid the creation of a beneficial loan.

    Looking at current HMRC guidance I can't find any reference to the 5k
    limit, have things changed?:

    http://www.hmrc.gov.uk/ct/managing/director-loan.htm

    I note the requirement to ensure that any deficit is made up no later
    than 9 months after the year end.
     
    fred, Nov 12, 2013
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  2. fred

    Robin Guest

    Looking at current HMRC guidance I can't find any reference to the 5k
    I think you may have had in mind the £5,000 limit which arises from the
    beneficial loans legislation. See eg
    http://www.hmrc.gov.uk/agents/toolkits/dla.pdf page 11
     
    Robin, Nov 12, 2013
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  3. fred

    fred Guest

    That's the ref I was looking for, thank you.

    Strange to find the main ref in just a toolkit but understood that my
    link to DLA guidance was primarily for Corporation Tax.

    I'll make sure our bases are covered.
     
    fred, Nov 12, 2013
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