The reason the Directors Loan Account concept exists is so that the Directors can loan money to the company.
However it is perfectly acceptable to overdraw it.
Some accountants recommend that you don't because if you overdraw more than £5000 and / or don't repay the loan within set timeframes then there are a load of compliance hoops to go through.
So it is fine to take a directors loan instead of a dividend and repay it from a dividend later, this will just push the income tax liability for the payment into the future.
Be careful with the £5000 limit. Some accountants will put any rounding amounts or items that you claimed as expenses but shouldn't have as debits to the Directors Loan Account so you could unexpectedly find yourself over the £5000 amount.
However it is perfectly acceptable to overdraw it.
Some accountants recommend that you don't because if you overdraw more than £5000 and / or don't repay the loan within set timeframes then there are a load of compliance hoops to go through.
So it is fine to take a directors loan instead of a dividend and repay it from a dividend later, this will just push the income tax liability for the payment into the future.
Be careful with the £5000 limit. Some accountants will put any rounding amounts or items that you claimed as expenses but shouldn't have as debits to the Directors Loan Account so you could unexpectedly find yourself over the £5000 amount.
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