NIM12017 – Class 1: Calculating
Class 1 NICs for Directors: Withdrawals from directors’ loan
accounts
Regulation 22 SSCR 2001
Each withdrawal or debit transaction can be:
- a repayment, or partial repayment, of the
loan if the account is in credit, or
- a further loan, or
- a payment made on account of
earnings.
An overdrawn account might be initial evidence that withdrawals
are on account of remuneration to be credited at the end of the
company’s accounts year but it is not conclusive in itself.
An account might be overdrawn during the company’s accounts
year because
- the company has agreed to make a loan or
loans to the director, or
- in the expectation that it will return to
a credit balance, because either
- the director’s remuneration will be credited
at a later date, or
- company dividends or some other sum will be
credited at a later date.
