CT61 and intercompany loans
When a CT61 is needed and what you need to know about director loans
If your company makes a loan to you that carries no interest, or lends money to another company, a CT61 quarterly return may be required. This is a specific obligation often missed by new directors.
When a CT61 is needed
A CT61 return reports income tax due on yearly interest payments on certain loans. The most relevant scenario for directors is a loan from one company to another at less than the official HMRC interest rate. If you have a second company and transfer funds between them on a loan basis, contact us to confirm whether a CT61 obligation arises.
For personal director loans
An interest-free loan from the company to you personally below £10,000 does not trigger a benefit in kind or a CT61. Above £10,000, a benefit in kind arises on the interest foregone (the HMRC official rate applied to the loan balance). We can calculate and report this on your P11D.
💡 Good to know: Most small single-company director-shareholders do not have a CT61 obligation. The CT61 becomes relevant when there are multiple connected companies or when the Director’s Loan Account carries formal interest. We will advise if it applies to your specific structure.
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