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
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
Where your company lends you money, it might face a tax bill as a result. You can get your company off the tax hook by repaying the loan. But if money is tight and repayment isn’t possible, is there
another way to dodge this tax?
Published 08.12.2010
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
Your director’s loan account is significantly overdrawn, so your accountant suggests writing the debt off as this will be tax efficient. But you’re not so sure; you recall a change in the rules
relatively recently. So should you follow his advice?
Published 11.01.2012
Your company’s financial year ends on 31 December and your director’s loan account is in deficit. To avoid this triggering a tax bill for your company, you could take a bonus to clear the debt.
What’s the most tax-efficient way to handle this?
Published 13.11.2014
You have been in business for several years without any trouble from HMRC. However, your accountant says that the way your director’s loan account is managed might increase your tax bill. Why, and
can it be avoided?
Published 13.05.2020
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
If you borrow from your company and don’t repay the debt within a set time it will have to pay extra corporation tax. The good news is there’s a legitimate way to avoid it without repaying the loan.
How is it done?
Published 22.01.2016
Borrowing from your company can result in it having to pay extra tax, but it can be avoided if you repay the debt within a set time period. What steps can you take to make sure repaying what you owe
is as tax efficient as possible?
Published 16.03.2015