How do I record the business making a loan to the directors and their subsequent repayments?

Hello Ruth@barlowfinan, 

Welcome to the Community page, 

So the loan needs to be a current liability or a non-current liability dependent on the length of the loan then you would need to do an expense to pay off the loan. 

If you have a look at this help article it has all the steps you need to do to be able to record this in your account. 

But its the business making the loan to the directors, surely a loan taken out by the business is a liability not the other way around?

Hi ruth@barlowfinan 

Yes - it's an Asset for the business.

As an aside - the company should be really careful regarding Benefit in Kind with this.  Are the Directors paying interest on these loans?  If not, HMRC would construe this as a taxable benefit.