Business Tax- Edit/Repayment for Director's loan taken out in a previous period and S455 Tax paid

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Business Tax- Edit/Repayment for Director's loan taken out in a previous period and S455 Tax paid

13th October 2015

IRIS Business Tax

How to edit or claim a repayment for a loan taken out in a previous period, which has now been partly or fully repaid? S455 Tax paid.

If a loan is repaid after 9 months of the period end date in which the loan was taken out, then users would be required go to the year that the loan was taken out and put in the payment details within the section ‘after 9 months of period end date’ and then send in an amended return.
CT600A, loan, loan to participators, repayment, directors overdrawn loan, directors loans. Note: There is nowhere on the CT600A in the current period for this repayment to be disclosed.

To Edit/Remove a loan which has been paid fully or partially AND/OR To claim the refund of S455 tax paid in the current year tax return (if it is a rolling loan b/f or a new client therefore an amended return cannot be completed) users would need to complete the following steps:

1. Go to Data Entry | Loans to Participators
2. Double click on the box brought forward and tick the ‘override‘ box
3. Manually reduce the b/f to 0 or the loan remaining to be paid off
4. Click ‘Update Totals‘ and OK
5. If it requires a repayment from HMRC: Go to Data Entry | Summary and under the Repayment Claim section tick the box ‘For Earlier Period’
6. Go to Edit | Notes – enter any S455 refund/tax reclaim information and any other details here. If there is a repayment/refund due then this calculation will not show anywhere on the computation or CT600 which is why you need to enter it under ‘notes’ – once it has been submitted, HMRC will make the calculation and repay back accordingly