T1 Entrepreneur Extension Director Loan Query

[amiao6]

Hello Everyone,

I have a question of Director Loan. I have already invested 80k in my business. However only 60k is by bank transfer which I can show each transaction on my business bank statement. The other 20k is cash expenditure which I can not find receipt for all of them.

My question is since I go for the 50k route, my bank transfer (60k) already met this criteria, how should I draft the Director Loan Agreement (I didn't realise I need one until the end of second year) to clarify this issue? Should I write DLA of 80k investment or just 60k? Or can I ask accountant to make note on my account, saying that 60k have been invested in business account as Director Loan?

Please kindly let me know your valuable opinion. I am much appreciated of it. Please also let me know if I didn't clearly explain my issue. Thank you very much for your help.

[samaygrg]

In my opinion, best thing is talk to your accountant for those extra untraceable 20K, about which they might have better idea how it can be managed.

Regarding the HO requirement, that 60K would give you the required point, but it is advisable that you should manage that 20 either in explainable way or remove them from your account, to make your accounts more reliable, realistic and genuine.

[amiao6]

In my opinion, best thing is talk to your accountant for those extra untraceable 20K, about which they might have better idea how it can be managed.

Regarding the HO requirement, that 60K would give you the required point, but it is advisable that you should manage that 20 either in explainable way or remove them from your account, to make your accounts more reliable, realistic and genuine.

Hi Samaygrg,

Thank you very much for your reply. I will discuss with my accountant regarding this issue. I am wondering is it possible to remove it from my account since I already submitted it to HMRC and Companies House for the past two years? Thank you.

[zimba]

Prepare a loan agreement with a total amount matching your bank transactions. This also need to be mentioned in the accounts clearly.

[amiao6]

Prepare a loan agreement with a total amount matching your bank transactions. This also need to be mentioned in the accounts clearly.

Hi Zimba,

Thank you very much for your reply.