There are two different ways to calculate the taxable benefit-in-kind (BiK) on your director’s loan account. One of them is more tax efficient, but the Taxman has the right to override this; is he
likely to do so?
Published 08.06.2010
Several years ago you pumped some personal cash into your company, but now you could do with a chunk of it back. Your accountant has warned that this could lead to a tax charge. Why, and how can you
avoid it?
Published 25.11.2011
HMRC’s official rate of interest is at an all time low. That’s good news if you’ve borrowed money from your company, but eventually the rate is bound to rise. Is there a way to dodge a corresponding
increase in your tax bill?
Published 24.10.2016
From March 24 the Chancellor has changed the rules on company loans to shareholders. In future, loans that a company writes off won’t get a Corporation Tax deduction. Are there ways to avoid this new
tax cost?
Published 13.04.2010
If you use your company’s money to pay for personal items or just to top up your cash, it can result in tax charges. When will these apply and how can you legitimately avoid them?
Published 02.05.2017
Where you borrow money interest-free from your company, you can land yourself with a tax bill. But a friend, who’s also a director, tells you that he avoids this by paying interest to his company.
Will this also work for you?
Published 31.10.2011
You have a large self-assessment tax bill to pay at the end of January. The trouble is that after the excesses of the festive season you’re a bit strapped for cash. What are the tax consequences of
using company funds to pay HMRC?
Published 09.01.2017
Banks are now paying interest at all-time-low rates. So, could you use your director’s loan account to switch the investment to one in your company’s name, and get a better result?
Published 07.05.2009
Your director’s loan account is substantially in the red and likely to stay that way for a while. As this is a benefit in kind you’ll have to pay tax and your company, NI. Both can be avoided if you
pay interest on the debt but would it be tax efficient to do so?
Published 15.11.2022