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Why is the amount owed to a director a negative?

Please note: the figure for amount owed to the director will only be accurate if your Crunch account is up to date.

 

 

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 Recording a dividend raises the amount owed to a director, which can then be withdrawn, reducing the amount owed to the director.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 customer payment and not deposit it into the company's account. 

For example, if the amount owed to the director was zero, and the director records that they receive a customer payment personally of £1000, the amount owed to the director would show as -£1000.

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

Last Updated: 23 May 2018 12:41PM BST
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