Directors Loan Accounts

[BabyBird]

Calling all accounts experts. I have an overdrawn DLA with a company which until August I was a Director of. This company is going into liquidation and I have resigned as a director. Does anybody know if I have to pay back this DLA and if I don't what are the implications?

[Bluebird]

BB - not sure what you're asking here.

A Directors Loan is a Loan a Director makes to the company, say to see it through a sticky patch or to cover start up costs.

If you have taken money out of a company, I think this is not very good [ perhaps even illegal ].

Can you provide more details of which way the money went, why are are still not a director, were you the sole director etc...

May be able to help you more then..

[simondolan]

Calling all accounts experts. I have an overdrawn DLA with a company which until August I was a Director of. This company is going into liquidation and I have resigned as a director. Does anybody know if I have to pay back this DLA and if I don't what are the implications?

Short answer is yes, you will have to pay it back if there are any creditors (ie people the Company owes money to).

[r0bly0ns]

BB - not sure what you're asking here.

A Directors Loan is a Loan a Director makes to the company, say to see it through a sticky patch or to cover start up costs.

If you have taken money out of a company, I think this is not very good [ perhaps even illegal ].

A Directors loan account can also be used to borrow money from the company, although there is a limit to the amount you are allowed to borrow (to prevent people borrowing money instead of taking dividends ).
If I remember correctly, this limit is about 5k.

[MobileCheese]

A different question on Directors Loans.

I had my accounts done and the div payments were rounded up, this left a surplus of approx £350 being the difference between the divs I actually took say for example £7650 and the rounded up divs for the accounts £8000. I was advised that I could pay this £350 back to myself as a directors loans repayment, thing is I never loaned this to the company, the £350 just came about from the rounding up. Is this ok to do ?

[Sockpuppet]

A different question on Directors Loans.

I had my accounts done and the div payments were rounded up, this left a surplus of approx £350 being the difference between the divs I actually took say for example £7650 and the rounded up divs for the accounts £8000. I was advised that I could pay this £350 back to myself as a directors loans repayment, thing is I never loaned this to the company, the £350 just came about from the rounding up. Is this ok to do ?

Yes, your directors account will just be £350 in credit so you could take it when ever you wanted to.

[NotAllThere]

Or to put it another way, the company still owes you £350 of dividend payment.