Time between Director's Loans

[x5x3]

what is the recommended time between repaying one Director's Loan and taking out another - i.e. to avoid any hint of "bed & breakfast"?

[PurpleMoonlight]

Best that is doesn't show on consecutive accounts.

[x5x3]

thanks - so to be clear if there is a director's loan on the 2016-2017 accounts then it is best not to take another one until the 2018-2019 year?

[anonymous-user]

What do you mean by bed and breakfast? I had directors loans constantly for many years and were shown in the company accounts for years. Accountant and Hmrc never said anything? I'm curious what the issue as I'm wondering if I was doing something wrong having read your post!

[Marcellus]

MikeStroud said:

What do you mean by bed and breakfast? I had directors loans constantly for many years and were shown in the company accounts for years. Accountant and Hmrc never said anything? I'm curious what the issue as I'm wondering if I was doing something wrong having read your post!

I suspect the OP is referring to the Company Loaning a Director Money and you're referring to a Director loaning a Company Money, two very different things as I understand it.

[98elise]

PurpleMoonlight said:

Best that is doesn't show on consecutive accounts.

My accountant said i just need to leave a month between fully repaying a loan, and taking any further loan. Do I need to give him a kick up the backside?

[PurpleMoonlight]

98elise said:

My accountant said i just need to leave a month between fully repaying a loan, and taking any further loan. Do I need to give him a kick up the backside?

That might be okay, but as there is no rule on this it comes down to HMRC's interpretation of a particular instance.