Does Director Salary deduct from injected director loan?

[Mak9878]

Hi everyone.

I have come to know an urgent issue regarding my application from solicitor that:

1)I have been injecting investment funds from my personal to business account and I was withdrawing my salary (while company was in loss for previous 2014-2015 and 2015-2016 yrs so obviously from director loan).. So does this reduce my director loan in business account which is 50,000 in total.

2) 3rd year is in profit but not that more. but still i have been taking salary 650 throughout 34 months i.e. £22100.

As you know you cant work in entrepreneur outside your company and you have to rely on company to give you salary for survival isn't it.

So will my director salary from business account to personal account for working and survival are deducted from total injected director loan of £50,000....plz guide very confused.

and if you can provide page number and section in policy guidance to this point if it exist...please let me know...

Waiting for your reply anxiously in this matter....

thanks

[sm12]

How much was the third year profit?

Some people suggest that the salary can come from the revenue but most people suggest it should come from profit.
The problem is that this is not explicitly stated in the rules.

[Mak9878]

the profit is not much.. its under £1000 i believe....still account for 3rd year under preparation.
But who can let us know that director salary really deduct from injected director loan.. because i know few people there business was in for 3 yrs and used to withdrew salary as director and managed to get successful extension.

nothing mentioned in policy guidance too...its looks like a myth.

[sm12]

the profit is not much.. its under £1000 i believe....still account for 3rd year under preparation.
But who can let us know that director salary really deduct from injected director loan.. because i know few people there business was in for 3 yrs and used to withdrew salary as director and managed to get successful extension.

nothing mentioned in policy guidance too...its looks like a myth.

It is tough to comment without seeing those people's accounts. Maybe they had invested much more than 50,000 in the first place, so the difference between the investment and salary was still over 50,000?

[Mak9878]

the profit is not much.. its under £1000 i believe....still account for 3rd year under preparation.
But who can let us know that director salary really deduct from injected director loan.. because i know few people there business was in for 3 yrs and used to withdrew salary as director and managed to get successful extension.

nothing mentioned in policy guidance too...its looks like a myth.

It is tough to comment without seeing those people's accounts. Maybe they had invested much more than 50,000 in the first place, so the difference between the investment and salary was still over 50,000?

yes probably they have made more investment than withdrawal of salary

But we urge seniors and successful extension applicants to comment on this thread with their knowledge and expertise because most of cases which are not awarded points on director loan is this issue...

Thanks

[CR001]

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