Directors loan end of year

[northernladyuk]

Okay thank you. Essentially I'll be paying the 7.5% dividend fee this way, I thought there would be a different way around it.

Drive 1000 miles.

Incidentally I never noticed the nuance of tax v NI. Is that new?

For tax purposes: 45 pence for the first 10,000 business miles in a tax year, then 25 pence for each subsequent mile

For National Insurance purposes: 45 pence for all business miles

[Pip in a Poke]

Hi,

My year end was February and my accountant has finalised my accounts and informed me that the Directors Loan Account has a debit of £450, that must be repaid. This was a bit of a surprise.

What implications does this have to me and my company, if any? I.e. tax.

How do I pay the money back to my company?

Thank you.

Hi Saturn,

I'm sure you're longing for some helpful advive.

Tell your accountant you wish to declare a paper dividend. Job done.

[tarbera]

Check if the loan had ppi and make a claim

[malvolio]

Hi Saturn,

I'm sure you're longing for some helpful advive.

Tell your accountant you wish to declare a paper dividend. Job done.

I'm sure I already said that....

Although the OP is now worried about paying tax on the nominal dividend. No helping some people...

[SueEllen]

I'm sure I already said that....

Although the OP is now worried about paying tax on the nominal dividend. No helping some people...

You have just noticed...

[northernladyuk]

I'm sure I already said that....

Although the OP is now worried about paying tax on the nominal dividend. No helping some people...

Take a Director's Loan to cover the tax.

[northernladuk]

What we need is some kind of tool to help us find all this useful information that there is out there. Something we could type Directors Loan and it would return us lots of useful links to the relevant information.

Or a phone so he can call his bloody accountant.

[northernladyuk]

What we need is some kind of tool to help us find all this useful information that there is out there.

We've already got one.

[northernladuk]

We've already got one.

I'll line em up. You knock em down.

[TonyF]

Hi,

My year end was February and my accountant has finalised my accounts and informed me that the Directors Loan Account has a debit of £450, that must be repaid. This was a bit of a surprise.

What implications does this have to me and my company, if any? I.e. tax.

How do I pay the money back to my company?

Thank you.

Transfer the money or pay a cheque from your personal account to the company and then reconcile that in the accounts as repaying the DLA. There's nothing more that you need to do - how you get the money in the first place is up to you as well. You could declare a dividend, you could pay a bonus as salary, you could personally buy things and claim the valid business expense back from the company and not actually transfer the money over.

There are no implications for the company regarding tax, since this is you repaying the loan. The only implication for you personally comes when you get the money that you use to repay it - if you're declaring a dividend then you'll attract tax on that (presuming you are over the £5k tax free threshold). If you are paying a bonue then that might attract income tax and national insurance depending on what you've already paid this year.