During the preparation of your first set of accounts, it came to light that some income and payments relating to the business went through your personal bank account. What’s the safest way of dealing
with this?
Published 16.02.2006
If it comes to light when you prepare your company’s accounts that you’ve got an overdrawn director’s loan account, what is the best way of dealing with this? Is it really a problem?
Published 22.05.2008
Your company regularly pays your personal bills and recharges those costs to you via your director’s loan account. This has never caused a problem with the Taxman in the past. So why is it doing so
now?
Published 19.06.2008
Over the last year you needed to borrow money from your company which pushed your director’s loan account into the red. You now want to clear the debt. What are your options and what potential tax
pitfalls might there be?
Published 09.03.2021
There is a pitfall for small companies if making dividend payments to director shareholders involves using their loan accounts. How can you avoid this becoming a problem?
Published 16.12.2004
Owing your company money can trigger a tax charge for which the Chancellor increased the rate in the 2016 Budget. It can be avoided by paying yourself a dividend to clear the debt, but is this the
most cost-efficient option?
Published 05.04.2016
Dividends are often voted to a director-shareholder but used to clear their overdrawn loan account and so prevent a tax charge arising on the company. But why might this not be the most tax efficient
policy?
Published 25.10.2012
Where a director owes his or her company money, it can face a tax bill. But it’s not an easy job to work out how much this should be, and the Taxman will have his own ideas. What steps can you take
to keep the bill to a minimum?
Published 19.01.2011
Overdrawing your director’s loan account can land both you and your company with a tax bill. A common way of dodging this is to pay a dividend after the end of the financial year, but this won’t work
in every case. Is there a better option?
Published 25.01.2012
Borrowing money from your company can result in a tax charge for it. This can be avoided by clearing the debt within a time limit set by HMRC. But that’s a problem if you don’t have the cash to do
it. Is there a tax-efficient alternative?
Published 07.09.2022