[GNC] Directors loan - do I need an expense account?

[Dr. David Kirkby]

On Fri, 10 Dec 2021 at 15:18, Gyle McCollam <gmccollam at live.com> wrote:

> This is a lot different than your first explanation.  Under these
> circumstances where you sold the company electronic equipment, it is indeed
> just an expense.  On the company's books, it is the same as if the company
> had bought the equipment from any other vendor and would in no way be a
> "director's loan".  Treat it like any other expense on the company's books.
>

Yes, I agree, it's different from my first explanation. My accountant has
confused me, by saying it's a directors loan. After setting the company up,
and getting him as an accountant, he sent me a blank Excel spreadsheet with
"directors loan" as one of the tabs. Last year he said I had mis-calculated
the directors loan as it did not agree with the bank statements. So I asked
him in a recent email to clarify the exact outstanding amount, which he
did.

*"3) Directors loan at the end of the financial year - £1,995.31 (see
attached movement schedule)"*

(I've not attached anything, but that is a simple copy/paste from his email)

Sorry for the confusion, but it was my accountant that confused me.😢😢😢

I believe the main thing is that the date submitted to HMRC is correct,
which it is. The outstanding amount is being sent to HMRC as an expense. I
think he just confused me by using this term "directors loan" when
technically it's not the right term.

Dave