S455 charges

I am looking to confirm 2 points relating to S455 repayments. 1. Can salary issued after the Year end with an OD DLA within 9 months and 1 day show partial repayment? Example: £20k DLA overdrawn, £10k salary issued after leaving £10k remaining as overdrawn. Would £20k be chargeable to S455 or £10k? 2. Can a cash deposit show partial repayment if deposited after a Year end with an OD DLA within 9 months and 1 day show partial repayment? Example: £20k DLA overdrawn, £10k cash deposit made after leaving £10k remaining as overdrawn. Would £20k be chargeable to S455 or £10k?

Hi Eloise Brown,
1.  Yes. The salary payment will constitute a repayment of part of the loan.
The original charge to s.455 tax is on the outstanding amount of a loan at the end of an accounting gperiod.
If all or part of the loan is later settled within nine months (not nine months and one day) from the end of the period, relief is due at that time a claim is made, and the charge to s.455 tax is reduced proportionately.
In your example, the charge would be on the £20,000 loan; but if the company were to claim relief on the £10,000 repayment at the same time it files its tax return, the charge to s.455 tax would be calculated only on the remaining £10,000.

2.  Yes. Relief can be claimed for repayments made after the end of the period in which the loan is made.
When relief is due, however, will depend on how long after the end of the accounting period that repayment is made.
Thank you. 
 

Thanks for your reply, RE 1. is this still shown as a repayment like dividends would be if the individual then takes the salary withdrawals?

Hi Eloise Brown,
Any salary used to repay a directors loan rather than being paid direct to the Director, would be classed as a repayment of the loan.
Thank you.