Salary / Directors Loan Question

Question asked by Jason Brown 4 years ago

Hi,

I am confused on how to represent the following. It's a new company and this is the first transaction.

I have opened a Directors Loan Account.

I have 'paid' myself a salary payment that has generated a refund and totals ~£2300.00 and submitted the FPS to HMRC

As the company has no money yet I wish to store this credit, (apologies if that's the wrong term, i'm not an accountant), in the Directors Loan Account so I can withdraw it at a later date when the company has sufficient funds. There are invoices due to be raised that will cover this.

I understand this may not be a conventional approach but after several months waiting for a self assessment refund last year I am aiming not to have to wait again this year. Although I do understand that HMRC will take months to send the refund to the company, however, I am less worried about that even though it may seem like six of one and half a dozen of the other.

If anyone could help I would appreciate it.

Kind regards Jason

2 Replies

Hi Jason,

You could simply quickpay the refund, specifying the Director's Loan account as the bank account, to get the money in there.

Please see the Support Guide below for information on quickpaying an invoice (a refund works the same way).

https://www.clearbooks.co.uk/support/guides/payment/quick-pay-unpaid-invoice/

When you have the invoices you want to use this money for you can pay them the same way.

I hope that helps.

All the best

Hi Richard,

Thanks for that, much appreciated.

Also hadn't figured out that I needed to get the figures in from Payroll first to the accounting side. Still, all sorted now.

Kind regards Jason

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