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

A directors row is greyed out and cannot edit values? Go to Client/View/Related/ Involvements/ Directors tab. If the director has left company and shows a ‘TO’ date in the past then). You can add a NOTE to HMRC when submitting the CT600 to state the updated values OR remove the ‘TO’ date which may ungrey out the row, try and edit the values and then you add back in the TO date. However if the row is still greyed out then this is a known issue on IRIS version 25.1.0 and 25.1.3 and this has been reported to the IRIS Development team and we shall update this KB on further news. If you need to urgently submit the CT600 now: Data Entry, Summary, Right side – Loans to Part by close comp, Tick NO, Add a note to HMRC to state this is omitted loan data of XXX for the client and you plan to send amended later on. When you generate it will NOT pick up the loan information and so you can submit it now. Once the fix is released you can then send an Amended return with the full information later.