Interest on loans by Directors

CaroCrewe Registered Posts: 7 New contributor 🐸
I can find a lot of information about interest payable on company loans to its directors, but very little on interest payable to Directors on loans they make to their company.
Our SME has 2 Directors and back in September 2004 they both loaned an amount each to their limited company indefinitely from their own personal monies (it was required as our Bank at the time pulled away all facilities overnight).
Capital repayments were made back to them as & when possible with all debt repaid by end of September 2007. I accrued interest at 5% (HMRC allowed rate) on the reducing balances over the loan term and now wish to pay this over to them. I have been advised that I should deduct income tax at source first and also need to complete & file a Form CT61 on behalf of the company.

Can anyone please confirm this, give me other guidance and also I can't locate a Form CT61 on the HMRC website to download - is it a "call and ask for" form?

Any help gratefully accepted on this one.


  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    There is probably not so much information about loans the other way as people do not tend to pay interest as often as they once did.

    A CT61 is company specific (for some reason) so you have to phone Shipley and get them to send you one.
  • CaroCrewe
    CaroCrewe Registered Posts: 7 New contributor 🐸
    Thanks Dean - your reply is much appreciated

    Shipley, here I come :)

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