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Why is the amount owed on my Director Loan Account negative?

Please note: The figure for the amount owed to the director will only be accurate if your Crunch account is up to date, so we'd recommend reconciling first.


The amount owed to the director will be negative if the director owes money to the company. This can come about by the director withdrawing money without recording a dividend.

Recording a dividend raises the amount owed to a director, which can then be withdrawn, reducing the amount owed to the director. 


Another reason the amount owed to the director can reduce is if one of the company's directors were to receive personally a client payment and not deposit it back into the company's bank account. 

For example, if the amount owed to the director was zero, and the director records that they receive a client payment personally of £1,000, the amount owed to the director would show as -£1,000.

The number shown by the "Amount owed to the director" is calculated directly from the director's loan account.

Last Updated: 21 Nov 2019 09:02AM GMT
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