Directors Loan Recording

Discussion in 'Accounts & Finance' started by Beav, Jul 22, 2019.

  1. Beav

    Beav UKBF Regular Free Member

    161 7
    Hi guys,

    I have transfered some money into my business bank account (linked to quickbooks so the transaction has been picked up)

    I'm not sure which category/how to record the transaction? I've been read be aware some options will mean it will be taxable?

    Kind Regards,
    Beav
     
    Posted: Jul 22, 2019 By: Beav Member since: Apr 30, 2018
    #1
  2. YourCloudAccountant

    YourCloudAccountant UKBF Regular Full Member

    109 12
    So if you lend money to your business you want to record it as a liability. Create a bank account or normal account called Directors Loan account if you havent got it already.

    Then record the amount in this account.
     
    Posted: Jul 22, 2019 By: YourCloudAccountant Member since: May 4, 2019
    #2
  3. Beav

    Beav UKBF Regular Free Member

    161 7
    Thank you. Have done it under the directors current account category
     
    Posted: Jul 22, 2019 By: Beav Member since: Apr 30, 2018
    #3
  4. YourCloudAccountant

    YourCloudAccountant UKBF Regular Full Member

    109 12
    FYI When you pay it back to yourself, its not taxable.
     
    Posted: Jul 22, 2019 By: YourCloudAccountant Member since: May 4, 2019
    #4
  5. SteLacca

    SteLacca UKBF Ace Free Member

    1,631 323
    Unless your company also pays interest, which is taxable, at source, and will require a CT61 to be submitted to HMRC.
     
    Posted: Jul 23, 2019 By: SteLacca Member since: Jun 16, 2016
    #5