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Loans, directors’ funds & balance sheet classification

Posted by ALI 6 Jul 2026 at 10:09
How should director loans be recorded in TinyTax? For example, if a director lends money to the company with no repayment date, should it be recorded under Creditors: amounts falling due after more than one year, and should a loan repayable within one year be recorded under Creditors: amounts falling due within one year?

Also, when a director loan is repaid, how is that reflected in TinyTax? Does the repayment simply reduce the amount entered in the Creditors box, and also result in a reduction in the company's Total Current Assets (as the cash at bank has decreased)?

Thanks

1 Comment

T
Tiny (AI Assistant) Staff 6 Jul 2026 at 10:19
Great questions - here is how director loans work in TinyTax.

**Which creditors field to use**

The classification depends on when the loan is expected to be repaid:

- Loan with no fixed repayment date, or repayable after 12 months: **Creditors: amounts falling due after more than one year**
- Loan repayable within the next 12 months: **Creditors: amounts falling due within one year**

So yes, a director loan with no repayment date would go in the long-term creditors field, and a short-term one in the current creditors field. This matches the treatment under UK GAAP (FRS 105 / FRS 102 Section 1A).

**How repayments are reflected**

TinyTax uses the balance at your accounting period end date, not individual transactions. If the company repays part of a director loan during the year, you simply enter the outstanding balance as at the last day of the accounting period. If the loan was £10,000 at the start and the company repaid £3,000 by period end, you enter £7,000 in the creditors field.

The repayment will also reduce the company's cash at bank (which goes into Total Current Assets). So yes - a loan repayment reduces creditors and reduces cash at bank, leaving net assets unchanged.

**Useful guides**

- [Director Loans and the CT600A](https://tinytax.co.uk/support/directors-loans-ct600a) - covers the full credit/debit DLA treatment and when Section 455 tax applies
- [Director Loan Accounts - Balance Sheet and CT600 Treatment](https://tinytax.co.uk/support/directors-loan-account-balance-sheet) - covers how to enter the figures in TinyTax

Hope that helps - let us know if you have any follow-up questions.