Unaware of Directors loan

[equinox]

For the last 2 years I have been using the spreadsheet from my accountant and now have migrated to their online portal.

From the migration a few things have flagged up regarding expenses which I am in dispute with my accountant about.

Apparently I have taken a directors loan (Despite claiming the usual expenses, paying for them personally and reclaiming them from the company account) and withdrawing money in the salary/dividend format.

The expenses include:

Mileage
Use of home
Food
Parking

And a with-drawl from the company directors account (Profit from previous year)

As far as I am aware these are all legitimate business expenses (Accumulating £2500 for the period). I think it may be a glitch whilst migrating from the spreadsheet, as the spreadsheet doesn't say anything about the loan, however the accountant hasn't got back to me yet.

I was wondering if anyone had a similar experience or had taken a directors loan out before without realising/what are the pitfalls of doing so.

[BrilloPad]

How are you on the 2 year limit?

[equinox]

How are you on the 2 year limit?

What do you mean a 2 year limit? I have been a contractor for 2 years.

[TheCyclingProgrammer]

What do you mean a 2 year limit? I have been a contractor for 2 years.

The 24 month rule for travel expenses presumably.

[equinox]

The 24 month rule for travel expenses presumably.

Ah, thanks for clarifying.

Two separate contracts, 1st turned into 18month and now on a 6 month contract.

[MrButton]

Ah, thanks for clarifying.

Two separate contracts, 1st turned into 18month and now on a 6 month contract.

That’s not the 24 month rule. Have a quick read and double check you’re not caught by it.

It maybe your accountant has taken this into account but would have expected them to discuss it with you.

[equinox]

That’s not the 24 month rule. Have a quick read and double check you’re not caught by it.

It maybe your accountant has taken this into account but would have expected them to discuss it with you.

Thanks for your comment.

1st contract being in Manchester with Client X (18 month) and 2nd contract (6 month) being in Leeds with Client Y.

So unless I'm mistaken the engagement is under 24months and with 2 different clients.

[MrButton]

Sounds fine with regard to 24 month rule. I guess only your accountant can really answer then. Is it SJD?

[equinox]

Sounds fine with regard to 24 month rule. I guess only your accountant can really answer then. Is it SJD?

Yes, SJD. Much experience with them?

[MrButton]

Unaware of Directors loan

I haven’t. But there are plenty of threads on here with customers who say the service is declining. I also have a couple of close friends who have been with then and left due to poor service and mistakes.

Best to see what they say first.