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• # 115309
• Fri 07 Jul 2017 07:07 PM

Hello All,

I have a client that is the sole director of a limited company.  Though there is another sleeping partner.

He wants to inject some capital in to the business, but he doesn't want it to appear as a directors loan.  Haven't had a chance to talk to him about it yet, so not sure on the reason for this.

But just thinking about it, I am not even sure how I would enter it into the books.  Does anyone have any ideas.

Thanks

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• # 115380
• Sat 22 Jul 2017 12:03 PM

TDS

That sounds strange, why a director doesn't want to show in his loan account.

• TAXSAVA - Accountancy & Bookkeeping Services

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• # 115382
• Sat 22 Jul 2017 01:00 PM

Have talked to him since then, and has agreed that a director's loan is the
right thing to do.


I think he misunderstood what a director's loan meant. He thought that a
formal agreement would have to be put in place, with agreed interest rate
and loan period, which he didn't want.

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