{"id":1805,"date":"2020-11-28T08:26:47","date_gmt":"2020-11-28T08:26:47","guid":{"rendered":"http:\/\/www.pmabookkeeping.co.uk\/?p=1805"},"modified":"2020-11-28T08:26:47","modified_gmt":"2020-11-28T08:26:47","slug":"directors-loans","status":"publish","type":"post","link":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/directors-loans\/","title":{"rendered":"Director&#8217;s loans"},"content":{"rendered":"<div class=\"gem-c-govspeak govuk-govspeak direction-ltr disable-youtube\" data-module=\"govspeak\">\n<p>A director\u2019s loan is when you (or other close family members) get money from your company that is not:<\/p>\n<ul>\n<li>a salary, dividend or expense repayment<\/li>\n<li>money you\u2019ve previously paid into or loaned the company<\/li>\n<\/ul>\n<h2 id=\"records-you-must-keep\">Records you must keep<\/h2>\n<p>You must keep a record of any money you borrow from or pay into the company &#8211; this record is usually known as a \u2018director\u2019s loan account\u2019.<\/p>\n<h3 id=\"at-the-end-of-your-companys-financial-year\">At the end of your company\u2019s financial year<\/h3>\n<p>Include any money you owe the company or the company owes you on the <a href=\"https:\/\/www.gov.uk\/prepare-file-annual-accounts-for-limited-company\/prepare-annual-accounts\">\u2018balance sheet\u2019 in your annual accounts<\/a>.<\/p>\n<h2 id=\"tax-on-loans\">Tax on loans<\/h2>\n<p>You may have to pay tax on director\u2019s loans. Your company may also have to pay tax if you\u2019re a shareholder (sometimes called a \u2018participator\u2019) as well as a director.<\/p>\n<p>Your personal and company tax responsibilities depend on whether the director\u2019s loan account is:<\/p>\n<ul>\n<li>overdrawn &#8211; <a href=\"https:\/\/www.gov.uk\/directors-loans\/you-owe-your-company-money\">you owe the company<\/a><\/li>\n<li>in credit &#8211; <a href=\"https:\/\/www.gov.uk\/directors-loans\/you-lend-your-company-money\">the company owes you<\/a><br \/>\n<h1 class=\"part-title\">If you owe your company money<\/h1>\n<div class=\"gem-c-govspeak govuk-govspeak direction-ltr disable-youtube\" data-module=\"govspeak\">\n<p>You or your company may have to pay tax if you take a director\u2019s loan.<\/p>\n<p>Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:<\/p>\n<ul>\n<li>the loan was more than \u00a310,000 (\u00a35,000 in 2013-14)<\/li>\n<li>you paid your company interest on the loan<\/li>\n<\/ul>\n<\/div>\n<\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A director\u2019s loan is when you (or other close family members) get money from your company that is not: a salary, dividend or expense repayment money you\u2019ve previously paid into or loaned the company Records you must keep You must&hellip; <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-1805","post","type-post","status-publish","format-standard","hentry","category-latest-news"],"_links":{"self":[{"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1805"}],"collection":[{"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=1805"}],"version-history":[{"count":2,"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1805\/revisions"}],"predecessor-version":[{"id":1807,"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/1805\/revisions\/1807"}],"wp:attachment":[{"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=1805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=1805"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.pmabookkeeping.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=1805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}