Overdrawn Directors Loan account.

Good Afternoon,
Would someone be kind enough to confirm the following...
A client has an overdrawn director's loan account and so the correct actions would be:
Notify a loan to a participant on the CT600, then claim the relief if the loan is repaid within 9 months 1 day.
If the loan is over £5000 and interest free, it must go on the inidividuals tax return...
My main question is, if the loan is under £5000 should it still go on the CT600?
Opinions are divided in the office!!
Would someone be kind enough to confirm the following...
A client has an overdrawn director's loan account and so the correct actions would be:
Notify a loan to a participant on the CT600, then claim the relief if the loan is repaid within 9 months 1 day.
If the loan is over £5000 and interest free, it must go on the inidividuals tax return...
My main question is, if the loan is under £5000 should it still go on the CT600?
Opinions are divided in the office!!
0
Comments
I believe that if a loan is under £5,000, it is still an overdrawn DLA and should have the necessary S455 tax claculated and disclosed on the CT600. I believe that the rule with the under £5,000 balance relates to the benefit in kind. If a loan is outstanding of less than £5,000 then the interest element on the loan that has not been charged, does not need to be reported on the P11D.
I think that is how it works, but it would be best waiting for other opinions!
Regards
Thank you!