Hi All,
This query is for a friend of mine.
His Company year end was March 2011. He has filed his accounts and the corporation tax liability was £6k, to be paid by Dec 2011.
Now, as on 31st March, the cash balance in the Company business account was £6.5k.
However, he withdrew £5.5k in July 2011. He has repaid back £3k to the Company and as of today Company cash balance is £4k. He intends to repay the remaining amount before Dec 2011 and pay the Corp tax on time.
Could anyone please tell me the tax implications of this transaction?
Is this a Director's Loan?
Does it have to be declared to HMRC?
Thanks!
This query is for a friend of mine.
His Company year end was March 2011. He has filed his accounts and the corporation tax liability was £6k, to be paid by Dec 2011.
Now, as on 31st March, the cash balance in the Company business account was £6.5k.
However, he withdrew £5.5k in July 2011. He has repaid back £3k to the Company and as of today Company cash balance is £4k. He intends to repay the remaining amount before Dec 2011 and pay the Corp tax on time.
Could anyone please tell me the tax implications of this transaction?
Is this a Director's Loan?
Does it have to be declared to HMRC?
Thanks!
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