How to record paying back director’s loan

[tcq2005]

I borrowed £10k from my company and paid it back within 9 months . Could you please let me know how I should record the initial £10k loan and also how I should record paying back the £10k to the company in XERO? Thank you so much for your advice.

 

[DWS]

Take loan
Debit DLA Credit Bank
Pay back loan
Debit Bank Credit DLA

 

[Spur Support Services]

Or in Xero terminology -
Initial loan from company - treat imported/uploaded bank statement item as Spend Money transaction - 10k to Directors Loan Account 835
Pay back loan - treat imported/uploaded bank statement item as Receive Money transaction 10k to Directors Loan Account 835

 

[Timothiii]

is it taxable for the loan received from own company?
any supporting have to be submitted to HMRC?

 

[Scalloway]

Receiving a loan and repaying it has no effect for your personal tax.

 

[Bobbo]

Receiving a loan and repaying it has no effect for your personal tax.

Unless it is above £10,000 (which it thankfully is not in OP's case)

 

[Timothiii]

Unless it is above £10,000 (which it thankfully is not in OP's case)

what if >10,000?

and what is OP's case? it is diff from normal loan?

 

[Bobbo]

what if >10,000?

and what is OP's case? it is diff from normal loan?

If loan exceeds £10,000 (unless certain exceptions apply) then a Benefit in Kind arises as it is a 'beneficial loan' with the difference between interest as per the HMRC official rate and interest actually paid treated as a BIK. Company pays Class 1A NIC, personal tax for loan recipient.

OP = Original Post(er), i.e the person who started the thread.