Director's Loan - how much can you borrow?

[ASB]

Go careful with reducing payments on account though if you know they will be too low - HMRC do have the power to add on penalties of up to 100% of the amount due, and I've heard of them doing so in an extreme case.

It is the reasonable care regime. So you need to have reasonable evidence. Ggs stated case is that she is going to borrow to keep under it.

if it turns out she can't then self declaration of this to hmrc unprompted via an amendment in a contemporaneous manner may be enoughto alleviate any penalty.

But yes, if they are taking the mick the potential is there for hmit to give them a unpleasant day.

pushing up towards limits always makes things more risky. I guess this is a strong reason why your profession generally doesnt encourage it (sensibly). With this sort of pushing one needs to be right on top of things to stay on the right side.