Originally posted by northernladuk
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Reply to: Unaware of Directors loan
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Previously on "Unaware of Directors loan"
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Originally posted by craigy1874 View PostThere is no need to run everything through a director's loan account. In fact, I think it is a terrible idea.
Pay your salary separately and base it on your payslip.
Pay your dividend(s) separately and prepare your divi minute/voucher.
Pay your expenses separately based on your expense claim.
If you want to take a loan, take that separately.
Taking 'drawings' and putting them to your loan to then 'sort it out' at month/year end is just asking for trouble IMO.
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Originally posted by Jessica@WhiteFieldTax View PostAgree. 10, 15, maybe 20, years ago, it was the norm, but life’s now moved on. (Christ, I sound old)
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Originally posted by Alan @ BroomeAffinity View PostBeat me to it. I was just about to post the same. Why use a DLA when you don’t have to. IME, it just causes extra work, and gives HMRC something to delve into should you ever be investigated.
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Unaware of Directors loan
Originally posted by craigy1874 View PostThere is no need to run everything through a director's loan account. In fact, I think it is a terrible idea.
Pay your salary separately and base it on your payslip.
Pay your dividend(s) separately and prepare your divi minute/voucher.
Pay your expenses separately based on your expense claim.
If you want to take a loan, take that separately.
Taking 'drawings' and putting them to your loan to then 'sort it out' at month/year end is just asking for trouble IMO.
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Originally posted by sketchandsunshine View PostNo.
But let me ask a FA accountant.
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Originally posted by sketchandsunshine View PostAt intouch everything seems to go through the directors loan (dividends/salary/expenses etc) but you get a monthly summary when you close your month of accounts and as long as you pay everything as listed then it’s always £0. Seems a nice way to do it.
I assume FreeAgent does something similar.
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There is no need to run everything through a director's loan account. In fact, I think it is a terrible idea.
Pay your salary separately and base it on your payslip.
Pay your dividend(s) separately and prepare your divi minute/voucher.
Pay your expenses separately based on your expense claim.
If you want to take a loan, take that separately.
Taking 'drawings' and putting them to your loan to then 'sort it out' at month/year end is just asking for trouble IMO.
Leave a comment:
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At intouch everything seems to go through the directors loan (dividends/salary/expenses etc) but you get a monthly summary when you close your month of accounts and as long as you pay everything as listed then it’s always £0. Seems a nice way to do it.
I assume FreeAgent does something similar.
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Originally posted by equinox View PostYes, SJD. Much experience with them?
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Directors Loan
Bit concerning that the accountant hasn't picked this up or mentioned an overdrawn directors loan account at the year end, let alone through the year itself. Highlights one of the benefits of a realtime system such as Freeagent.
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Unaware of Directors loan
I haven’t. But there are plenty of threads on here with customers who say the service is declining. I also have a couple of close friends who have been with then and left due to poor service and mistakes.
Best to see what they say first.
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