directors loan account which is in credit!

dobdo99

I have run a small business and have loaned money to my company, not the usual dir loan where we borrow from the company.

How can I use this credit balance?
Can I use it to offset some corp tax?

or can it only be used to offset against income?

thanks in advance!

WillowCat

Money you've lent to your company may be withdrawn without it being income (dividends or paye) if you have the cash in the company to do so.

You can't offset it against corp tax - though assuming you lent the company money in order for it to purchase assets or for trading requirements then the original purchases would already have been offset in the normal way.

antrobus

dobdo99 wrote: »

I have run a small business and have loaned money to my company, not the usual dir loan where we borrow from the company.....

On the contrary, it's far more normal for a director's loan account to be in a credit. An overdrawn director's loan account gives you a tax problem.

dobdo99 wrote: »

...How can I use this credit balance? ..

Get the company to write you a cheque.

dobdo99 wrote: »

..Can I use it to offset some corp tax? ..

No

dobdo99 wrote: »

...or can it only be used to offset against income?...

In a sense, yes. In that instead of paying yourself a salary from the company, you could draw down the cash from the loan account instead. But then your salary is an expense for the company, so not paying a salary will increase the compnay's profits chargeable to CT.

Speak to your company accountant, if you have one.