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Director’s loan - off plan delay - when to log in Ltd Company accounts?

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Hi all,

Any nuggets of wisdom greatly appreciated!  I'm due to file first accounts soon at Companies House on new Ltd Company set up for purchase of an off plan property that has experienced years of delay.

I intend to use the deposit as a director loan.  10% was put down on exchange in Aug 2018, balance due on completion, estimated May 2021

Question is around how to record that as a loan: On purchase? On accounts now, dated to exchange?

Also, as since company set up end 2018, there's been no other transactions, can I file dormant company accounts?

Thanks in advance,


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If a director pays money into the company to use for things such as deposits then this will considered a directors loan. You don't really need to do any thing, just keep a track of the balance on the directors loan account and avoid becoming overdrawn (you owing the company money) as this has tax implications. 

Did you pay for the deposit through your company? If so this will be classed as a significant transaction and you wouldn't be able to file dormant accounts.

If the deposit was paid personally before the company was incorporated and there are no significant transactions in the company then you may be able to file dormant accounts and treat the payment of the deposit as a pre-trading expense. This will mean that it will be considered as if it had happened on the first day the company starts trading. The amount will be added to the directors loan account so the company will owe you this money. You would need to inform HMRC if the company is dormant. 


David M Slater ACMA 

Accufy Accounting  - Proactive accounting for property investors 

0208 242 4926    info@accufy.uk



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