HMRC seems to regard directors’ loan accounts (DLAs) as a ‘risk’ area, in which there is the potential for errors. Such is HMRC’s concern that they have produced a ‘Directors’ Loan Account Toolkit’, which provides guidance on the errors that commonly occur. It also includes a checklist to help reduce them (seewww.hmrc.gov.uk/agents/toolkits/dla.pdf).
However,toolkits and checklists only offer general guidance. Practical issues and problems can arise in respect of DLAs for director shareholders of ‘close’ family or ownermanaged companies, three of which are outlined below.
1. ‘Bed and breakfasting’
One of the checklist points in the HMRC toolkit is: “Where an… Read more…





