With the financial year-end for many companies approaching, directors need to keep an eye on the ins and outs of their company loan accounts. What steps can you take to ensure your company isn’t
taxed on money it’s lent you?
Published 20.03.2012
In his 2016 Budget the Chancellor raised the rate of tax companies must pay when they lend money to their directors. One way to avoid it is to clear the debt with a bonus. What special steps are
needed to put this into effect?
Published 09.06.2016
Your company’s financial year is drawing to a close and your director’s loan account is in the red. This will trigger a tax bill, so your accountant advises taking a bonus to clear the debt. But how
should you calculate this and when should it be paid?
Published 07.12.2010
HMRC has strict rules on when business owners can claim tax relief for interest they pay on personal loans used to fund their businesses. What are they and what steps can you take to avoid falling
foul of them?
Published 22.01.2016
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 need extra spending money for your summer holiday. As your company has plenty in the bank you’re considering transferring some to your personal account or using your company credit card while
away. Which option is more tax efficient?
Published 12.06.2019
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
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
Our subscriber’s company lent him a large sum shortly before the end of the last tax year. His bookkeeper says that the timing of the loan means he and the company face a large tax and NI bill. Why
and is there a way to dodge it?
Published 30.04.2018