Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?
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Free childcare for company owners?
You’re an owner manager and your daughter is due to start nursery. You understand that working parents can get free childcare but a friend said this isn’t available if you only pay yourself dividends. Is this true and what can you do to qualify?
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CT61
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Getting the NI on benefits right
Getting the National Insurance (NI) treatment of employee benefits wrong remains a common issue for employers, particularly where the benefits are payrolled. Errors can lead to underpaid NI and potential compliance action. What should you check?
The letters are being sent to taxpayers who:
- had a director’s loan that was written off or released between April 2019 and April 2023; and
- did not declare the amount as income on their self-assessment tax return.
The amount released or written off is treated as an income distribution and is taxable at the appropriate dividend rates. If you do need to pay extra tax you can tell HMRC by using the digital disclosure service. This service can be used even if the loan was written off or released before April 2019, but for loans released or written off since 6 April 2023, you can simply amend your tax return to reflect the additional income.
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