Loss from last year 1301 and directors loan account

[brettadduco]

Hi There

Our limited company mad a loss last of eg £10,000 - This was all in deferred PAYE wages for the 3 directors, so we payed these from the directors loan account so as not to run down our bank account. Effectively owing ourselves the wages.

The 10K was marked up as a loss and appears after the year end in the 1301 account.

This year we have mad more money and paid off our directors loans effectively marking directors loan from the current account.

However… when I look at our tax liability now, we owe tax on all sales this year, ie it doesn’t take into account last years loss and payback to the directors loan account.

I suspect I need to journal some entry between the directors loan account and the Retained profit loss account.

Can someone please confirm this and give me an indication on how to do this.

Thanks you very much

B

[QFMathew]

Hi @brettadduco

While we’re not able to assist with accounting queries directly, I didn’t want to leave your topic go unanswered.

There are a few options you have to try and find the correct way to do this:

1. Ask your accountant (if you have one)
2. Request assistance from a panel of accountants via QuickFile (click the ‘Need help with your accounting?’ option in the top right corner of your dashboard)
3. Post on a more accounting orientated forum, such as UK Business Forum (Accounts Section)

If you know what journals you need to enter, or what you need to do to correct this, we’re more than happy to advise on how to achieve this within QuickFile itself.