Director's loan timing in respect to SATR

[pscont]

I know I can take upto 10k loan from my LTD and not declare it in my SATR. More than that and BIK kicks in and I have to declare it (provided I don't pay interest to the LTD).
The question is this:

LTD financial year ends end of November 2017.
If I take £100 000 as loan now and pay it back to LTD on 1 April 2018 will I need to declare it on my SATR in 2018(2017-2018 tax year)?

CC: my accoutant

[Patrick@Intouch]

As you would have a loan of more than £10,000 at some point during the current tax year then you would incur a taxable benefit in kind unless interest is paid to the company.

The benefit is not generated by having a loan outstanding at 5 April for more than £10,000 but by having a loan in existence at some point during the tax year of more than £10,000, even if the balance at the start and end of the tax year is less than £10,000.

You should also consider your accounts year end as if the loan isn't repaid within 9 months of the accounting period in which it is issued then the company would incur S455 tax at a rate of 32.5% of the loan balance as at the date to which your accounts are made up.

This tax would be repayable to the company when the loan is repaid but may be a cash flow consideration.

[pscont]

As you would have a loan of more than £10,000 at some point during the current tax year then you would incur a taxable benefit in kind unless interest is paid to the company.

The benefit is not generated by having a loan outstanding at 5 April for more than £10,000 but by having a loan in existence at some point during the tax year of more than £10,000, even if the balance at the start and end of the tax year is less than £10,000.

You should also consider your accounts year end as if the loan isn't repaid within 9 months of the accounting period in which it is issued then the company would incur S455 tax at a rate of 32.5% of the loan balance as at the date to which your accounts are made up.

This tax would be repayable to the company when the loan is repaid but may be a cash flow consideration.

Thanks.