Unaware of Directors loan

[northernladuk]

Agree. 10, 15, maybe 20, years ago, it was the norm, but life’s now moved on. (Christ, I sound old)

There is a good reason for that......

[Waldorf]

There is no need to run everything through a director's loan account. In fact, I think it is a terrible idea.

Pay your salary separately and base it on your payslip.
Pay your dividend(s) separately and prepare your divi minute/voucher.
Pay your expenses separately based on your expense claim.
If you want to take a loan, take that separately.

Taking 'drawings' and putting them to your loan to then 'sort it out' at month/year end is just asking for trouble IMO.

Agreed but let’s be honest not all contractors are financially savvy and many just take money from the bank with no paper trail, so processing it all through a director’s loan account is often the easiest way.

[Jessica@WhiteFieldTax]

There is a good reason for that......

Bog off