NIM12017 - Class 1: Calculating Class 1 NICs for Directors: Withdrawals from Directors’ loan accounts
Regulation 22 SSCR 2001
Each withdrawal or debit transaction can be:
- a repayment, or partial repayment, of the loan if the account is in credit, or
- a further loan, or
- a payment made on account of earnings.
An overdrawn account might be initial evidence that withdrawals are on account ofremuneration to be credited at the end of the companys accounts year but it is notconclusive in itself. An account might be overdrawn during the companys accountsyear because
- the company has agreed to make a loan or loans to the director, or
- in the expectation that it will return to a credit balance, because either
- the directors remuneration will be credited at a later date, or
- company dividends or some other sum will be credited at a later date.