UK Directors Loan Accounts

[marcj]

Good morning

Im hoping someone can help me clear something up, by way of an example

I borrowed £150k to start a business

Pre tax profits
Year 1 £8000
Rear 2 £45000
Year 3 £72000
Year 4 £70000
Year 5 £70000
Current year approx £60k

As of June I have fully repaid the £150k initial borrowing and have c£100k in assets

I am assuming when I calculate my total Pre tax profit and deduct tax and expenses etc, the £150k I repaid comes off the net profit

Or am I wrong?

Looking forward to a reply

MJ

 

[AGH the CPA]

some questions

what were the terms of the loan? Have you been making payments all along or was there just a big balloon payment? Have you been paying interest and if so how much? Monthly?

 

[marcj]

It was in stock, paid back over 5 years with no interest

Marc

 

[AGH the CPA]

It was in stock, paid back over 5 years with no interest

Marc

How did you borrow 150k in stock? That doesnt make any sense.

Lets start again:
Did you borrow 150k in pounds/dollars/euros?
If so, from whom did you borrow the money?