If this sounds like you
I cannot repay my director's loan account
Understand why drawings may become money owed to the company and which records matter.
You may recognise this
- The accounts show that you owe money to the company.
- Personal spending, drawings or dividends may be included in the balance.
- You are worried that a liquidator could ask you to repay it.
What to do now
- Preserve the full loan-account ledger and bank records.
- Separate salary, expenses, dividends, drawings and repayments.
- Get advice before making offsets, repayments or further drawings.
What to avoid
- Backdating dividends or company records.
- Assuming the accounting balance is automatically right or wrong.
- Moving assets to put them beyond creditors.
Useful information to gather
Do not wait for everything to be perfect. Start with what is readily available.
- Director's loan account ledger
- Bank and credit-card statements
- Payroll, dividend and expense records
- Latest accounts and tax computations
Why timing matters
Earlier action can preserve time, information and choice. Waiting for certainty can allow cash, legal or creditor deadlines to decide the next step for you.
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Related next steps
This page provides general information, not advice about your company or personal position. Formal deadlines may require immediate advice from a solicitor or licensed insolvency practitioner.