Transactions between a Company and its Directors - Accounting, Legal and Tax Implications

Transactions between a company and its directors requires careful consideration for practitioners and those in industry and commerce. Errors in just one of the three aspects, (accounting, legal and taxation), can create difficulties for the directors and their advisers. 

This course explores the common, and some not-so-common, issues faced by companies and provides a useful insight with a case study including numerous practical examples. 

Content will include: 

• Who are the directors and, where relevant, their connected persons 
• Legality of transactions – particularly loans and substantial property transactions 
• Legality of dividends 
• The Companies Act 2006 disclosure requirements for advances, credits, and guarantees 
• Related parties – disclosure issues in FRS 102 for medium/large entities and in FRS 102(1A) for small entities 
• Accounting treatment of loans to/from owner managers, including loans from owner managers to small entities. 
• Tax implications – remuneration vs dividends, s455 treatment, and benefits in kind 
• A case study looking at a variety of transactions looking at all three aspects – legal, accounting (treatment and disclosure) and taxation.

The content for online courses predating 2024 may vary.