Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Income Tax - Directors Overdrawn Loan

  • 08-03-2017 9:34am
    #1
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭


    Hi Folks,
    When a company pays over the income tax on the grossed up overdrawn loan account, how does it go about claiming a refund of the tax?
    If the Director is paying off regular amounts of the loan over the year, is there a form/return the company needs to fill in to claim partial refunds of the taxation or do they have to wait until the next CT1?
    Thanks


Comments

  • #2
    HcksawJimDuggan
    Registered Users, Registered Users 2 Posts: 394 ✭✭HcksawJimDuggan


    Heisenburg81 wrote: »
    Hi Folks,
    When a company pays over the income tax on the grossed up overdrawn loan account, how does it go about claiming a refund of the tax?
    If the Director is paying off regular amounts of the loan over the year, is there a form/return the company needs to fill in to claim partial refunds of the taxation or do they have to wait until the next CT1?
    Thanks

    It's claimed on the CT1 each year. There is a section in "Amendment to Prior Accounting Period" for the repayment of Directors' Loan. You need to enter amount of loan repaid & amount of refund due.


  • #3
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    Is it classed as Income Tax or Corporation Tax?
    Should an IT or CT charge be reflected on the P & L?
    IS the time frame 4 years in which it can be repaid and recovered in full?
    If not repaid within 4 years, does the company forfeit the tax - even if the loan not forgiven?  Is the loan deemed as forgiven at this point and the director charged to IT on the full amount?


  • #4
    Lockedout2
    Registered Users, Registered Users 2 Posts: 402 ✭✭Lockedout2


    It has nothing to do with the P&L it's a payment on account and should be included in debtors.

    It is reclaimed when the director pays back the loan, or within 4 years of the repayment!


  • #5
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    Lockedout2 wrote: »
    It has nothing to do with the P&L it's a payment on account and should be included in debtors.

    It is reclaimed when the director pays back the loan, or within 4 years of the repayment!

    Ah, so no accounting journal at time of final accounts. Debit payment on account when paid in the next financial year? Makes sense. Is it classed as IT? Thanks.


Advertisement