How to disclose directors’ advances and guarantees in company accounts
Short version. Companies Act 2006 section 413 requires accounts notes about advances or credit a company grants to its directors and guarantees it enters into on their behalf. It lists the particulars for each. To add prepared information to generated accounts, open Financial Data, then Optional notes to the accounts.
Go to the steps and entry details
On this page
1. Complete the task
- Prepare the amounts and terms for advances or credit the company gave to directors, and guarantees the company entered into on their behalf. Companies Act 2006 section 413 covers these disclosures. It does not mean a loan the director made to the company is entered as an advance to a director.
- In your filing, open Financial Data, then Optional notes to the accounts at the bottom of the step. Choose + Directors’ disclosure.
- Choose + Advance or Credit for each relevant advance or credit. Enter any prepared director name or reference, amount advanced during the period, amount repaid, amounts written off or waived, closing amount outstanding, and the interest rate and main conditions. Each field is optional. “Written off” and “waived” here mean amounts a director owed the company. For the opposite direction, where the company owed the director and the director releases that debt, see director’s loan waiver guidance.
- Choose + Guarantee for each guarantee. Enter a name or reference, main terms, maximum liability under the guarantee, and any amount paid or liability incurred to fulfil it. If it ended during the accounts period, enter the date its maximum liability applied. Otherwise leave that date blank and the accounts period end is used. Include expiry or release details in the terms where relevant.
- Blank amounts stay blank. Enter £0 when zero is the figure you want shown. If the accounts include a comparative period, choose + Previous-period figures and enter that period’s prepared amounts separately.
The amounts in this note cover the complete accounting period shown on the accounts, including a long accounting period. They are not split between CT600 returns and they do not fill in or change the separate CT600A tax calculation.
2. Check the result
Open the generated accounts preview and check the directors’ advances, credits and guarantees note, including any comparative figures. The same accounts note appears in the generated accounts copies for HMRC and Companies House. If you file uploaded accounts or a previous return instead of generated accounts, this optional wizard note is not added to those documents.
The form helps present figures you have prepared. It does not decide whether a transaction must be disclosed or whether the figures are complete. Ask an accountant or other qualified adviser if you are unsure what the company’s accounts should disclose.
Official sources
- Companies Act 2006, section 413 describes the particulars for directors’ advances, credits and guarantees in the accounts notes.
- HMRC’s CT600A guidance explains the separate Corporation Tax return rules for qualifying close-company loans and arrangements. It does not replace the accounts note.