**Limited Companies Only**
Overview
The Directors’ Loan Accounts feature on the Xenon Connect dashboard allows you to monitor the balances owed to/from the company by the directors of the company.
The reason that the loan relationship between directors and the company is important is that, where a loan account is overdrawn (i.e. the director owes money to the company), there can be adverse tax consequences for both the company and the director.
The official UK Government guidance on overdrawn directors’ loans can be found here.
Settings
Xenon Connect automatically attempts to detect Xero accounts that are set up as directors’ loans during the setup wizard.
Xero accounts can be added or removed as appropriate.
