Liabilities for directors loan up to £10,000

UK Discussion in 'Technical Queries' started by Peter SME, Dec 6, 2017.

  1. Peter SME

    Peter SME

    Dec 6, 2017
    Likes Received:
    Dear all,

    first post to the forum - hope the topic is ok.

    Suppose my corporate year is the same as calendar years. Suppose I take a director's loan of £10,000 after the start of one year (say 5/1/2017), and repay it before the end of the year plus 9 months (31/12/2017 + 9 months = 30/9/2018). What are the reporting requirements? What are the requirements in terms of interest or any other liabilities?

    If there is interest/liabilities, then would these be the same if I
    (1) repaid by the end of the corporate year (by 31/12/2017), or
    (2) if I only borrowed £5,000?

    Most examples seem to talk about liabilities beyond the "end of year + 9 months" period, or liabilities if you borrow more than £10,000. I haven't seen very clear statements what happens with you stay within the period and only up to £10,000. I've also seen some comments that things change if the loan is only £5,000, which suggests that there are certain liabilities if you borrow up to £10,000.

    Any light that you can shed on this would be very much appreciated!
    Peter SME, Dec 6, 2017
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