Director Loan in Company account

[zshaan21]

Dear Team Members,

Hope you guys are well.

I am about to apply my extension tomorrow, I invested 50k as a Director Loan when I got my visa in 2014. However, to check my company submitted accounts for last 3 years 2015, 2016, 2017 and Management accounts May-17 & June-17 I found that in balance sheet and in notes it shows " Creditors: Amount falling due within one year 52773 K. Someone told me that 50 K should come under "Creditors: Amounts falling due after more than one year" as the director loan period is 5 years and the remaining balance under amount falling within one year. They advised just to change the management accounts now and leave the submitted account details 2015, 2016 and 2017 as it is.

In notes under
Creditors: Amount falling within one year 2017 2016
Director current account £52773 £52773

“Amount falling due within 1 year includes unsecured loan amount owned to director Mr. XYZ, 52773K.

Please advise.

Kind Regards,
S Zeeshan

[marcnath]

Dear Team Members,

Hope you guys are well.

I am about to apply my extension tomorrow, I invested 50k as a Director Loan when I got my visa in 2014. However, to check my company submitted accounts for last 3 years 2015, 2016, 2017 and Management accounts May-17 & June-17 I found that in balance sheet and in notes it shows " Creditors: Amount falling due within one year 52773 K. Someone told me that 50 K should come under "Creditors: Amounts falling due after more than one year" as the director loan period is 5 years and the remaining balance under amount falling within one year. They advised just to change the management accounts now and leave the submitted account details 2015, 2016 and 2017 as it is.

In notes under
Creditors: Amount falling within one year 2017 2016
Director current account £52773 £52773

“Amount falling due within 1 year includes unsecured loan amount owned to director Mr. XYZ, 52773K.

Please advise.

Kind Regards,
S Zeeshan

There is no requirement as to how long the DL should be for. And you mentioned that the actual loan agreement had it as 5 years anyway.
So, this is just incompetence by your accountant who did not check the DL before they did the accounts. And, of course, you have the duty as Director to file correct accounts.
So, yes, you should correct the documents filed eventually.
But I personally think it does not matter as far as your immigration application is concerned. You meet the requirement that the DL is shown in the accounts under your name.
If possible, go ahead and correct it (you only need to submit one of your accounts) and submit the revised one (or send it later whenever it is ready).
And, if you are changing it, it should be the full amount. Not separate it to 50K and others.

[zshaan21]

Dear Marcnath,

Thank you for your reply.

I discussed with my accountant, as he told me as per the policy on company accounts notes your name mentioned against the director loan, as such there is no issue even if director loan amount in creditor falling within 1 year. He explained me the director loan balance some time increase or decrease to meet business requirement so that's why he put with in 1 year. He suggest there is no need to amend the account as the name requirement I have mentioned in my account under DL account.

Please suggest.

Kind Regards

[marcnath]

Dear Marcnath,

Thank you for your reply.

I discussed with my accountant, as he told me as per the policy on company accounts notes your name mentioned against the director loan, as such there is no issue even if director loan amount in creditor falling within 1 year. He explained me the director loan balance some time increase or decrease to meet business requirement so that's why he put with in 1 year. He suggest there is no need to amend the account as the name requirement I have mentioned in my account under DL account.

Please suggest.

Kind Regards

Ok. That is a valid argument though he could have just as well put it as more than one year.

It should not be anything to worry about - as mentioned, there is nothing in the immigration rules that relates to the length of the DL

[zshaan21]

Dear Marcnath,

I am really thank ful to your valuable advise, as this is a highly technical issue and 99 percent people got confused. My last concern is my un-secured director loan agreement period is for 5 years.

I hope it won't be any issue even despite creditors falling due with in 1 year"

Thanks in advance!!!

Kind Regards,
S Zeeshan

[CR001]

Can you please stop digging up and posting in other members topics. You have your own and getting advice already. Keep all your questions in this thread please.

[zshaan21]

Dear CR001,

Apologies for duplicate with the similar thread.

Regards,

[zshaan21]

Dear Gurus,

Please advise on the above query.

Kind Regards,
S Zeeshan

[marcnath]

Dear Marcnath,

I am really thank ful to your valuable advise, as this is a highly technical issue and 99 percent people got confused. My last concern is my un-secured director loan agreement period is for 5 years.

I hope it won't be any issue even despite creditors falling due with in 1 year"

Thanks in advance!!!

Kind Regards,
S Zeeshan

I would personally think it will not be an issue.

As I replied earlier, there is nothing in the rules that dictate what the length of the DL should be. So, I can't see on what basis CW can refuse the points.

[zshaan21]

Thanks a lot !!!

[marcnath]

Thanks a lot !!!

You are welcome.
There may be an odd CW who may find this problematic and either ask more questions or wrongly even reject. Hopefully that does not happen but even if does, you have your accountants advice to back you up in AR.
I think the chances are low of that happening