[UK Ltd Company] How do I inform HMRC that I have repaid a Director's Loan in time?

by JCurtisDrums. Posted on Sep 12, 2020    1    1

I run a small Limited company in the UK. I plan to take a £10,000 director's loan before the end of the tax year, which will be repaid a few months into the new tax year in 2021.

According to HMRC guidance, the loan being not more than £10k, and being repaid within 9 months of the end of my accounting period, means I will not be subject to BiK or interest of any kind. However, at what point do I actually inform HMRC that the loan has been repaid within the period?

On my corporation tax return in April 2021 for the 20/21 tax year, my balance sheet will show an outstanging £10k Director's Loan. Let's assume I repay the loan in June 2021, do I inform HMRC via some method, or just report it, along with the date, on my 21/22 tax return?

I just want to make sure I declare everything correctly so as to avoid any undue tax or BiK.




Actualise101 1

It's done as part of your company tax return. It asks if you had a loan at balance date and then asks if you've repaid it within the stipulated time.