Sage nominals advice for Ltd Co loan to Director

Discussion in 'Accounts & Finance' started by Spapro, Sep 12, 2019.

  1. Spapro

    Spapro UKBF Regular Free Member

    258 19
    Hi,

    Looking to take a £6875 directors loan out from our Limited company now which I will pay back to the company by August 2020 - our year end is December so this loan will be repaid within 9 months of our year end.

    First question is, based on the above, do I need to pay interest at 2.5% if paying the loan back to the company within 9 months of year end ?

    Also looking for advice around nominal codes for the loan out in Sage and then the repayments back in ?

    Just looking to keep it all clear and seperate in the accounts and make sure its reported correctly for the profit and loss and the balance sheet.

    Any advice greatly appreciated.
     
    Posted: Sep 12, 2019 By: Spapro Member since: Nov 21, 2009
    #1
  2. NicoJ

    NicoJ UKBF Regular Free Member

    126 16
    No, you don't need to pay interest. This is for your BIK which doesn't kick in until the loan exceeds £10k.
    Nominal code is usually around 2300 or 2400 depending on how you have set up your chart of accounts (balance sheet code, doesn't hit p&l at all). This is used for both money going out and money going in.
     
    Posted: Sep 12, 2019 By: NicoJ Member since: Mar 27, 2017
    #2
  3. johndon68

    johndon68 UKBF Big Shot Full Member - Verified Business

    3,395 618
    I have mine set up as a bank account in Sage, it just makes it a bit easier if you happen to purchase something for the company from your own funds but the overall affect on the balance sheet will be the same as NikoJ's suggestion.

    John
     
    Posted: Sep 12, 2019 By: johndon68 Member since: Nov 2, 2009
    #3
  4. Spapro

    Spapro UKBF Regular Free Member

    258 19
    Thanks for the responses guys, very useful and much appreciated !
     
    Posted: Sep 12, 2019 By: Spapro Member since: Nov 21, 2009
    #4