Salary / Directors Loan Question
Question asked by Jason Brown 4 years ago
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