I have written waivers from a couple of directors who had put money into the business waiving the repayment obligation on the business, so in effect they weren’t loans they were grants as it were. How do I now record this in Quickfile because the money obviously isn’t being paid back from the business but also needs removing from the Dir Loan Account?
Check with an accountant as this may have tax implications - you’ve effectively converted the credit (liability) balance on the loan into income for the business, and if it’s a significant sum then recognising all that income in one year could land you with a larger than expected tax bill. But I’m not an accountant and I’ve no idea whether you’d be allowed to amortise it across several years instead.
Definitely one where you want to get professional advice.
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