Can a Married Couple Combine their Directors Loan Account?
Q. Our company is owned jointly by me and my wife, and we are both directors of the company. I do most of the work and draw a lot of funds out of the business, so my director’s account with the company is often overdrawn. My wife has another paid position, so doesn’t draw so much from the company. Her director’s account with the company is always in credit. Can our two director’s accounts be combined and set-off against each other for tax reporting requirements?
A. Married individuals are taxed as separate persons in the UK, and their income and liabilities cannot be amalgamated to present a better picture for tax purposes. The Taxman is dead against the overdrawn balance on one person’s account being set against the credit balance on another person’s account, even if those two people are married.
What expenses can I claim as a Ltd Company?
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Win a year of Accountancy and Insurance
We’ve teamed up with our partners Create Insurance to offer people in the creative industry the chance to win a year’s worth of insurance and Accountancy services. 2020 was a tough year for freelancers in the creative space, so we’re hoping we can get 2021 off to a better start…