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
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
As a general rule, dividends are the most tax efficient way to get income out of your company. But these can only be paid where you’re making a profit. So what will the Taxman say if you pay
dividends from a loss-making company?
Published 29.11.2012
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
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
With all the fuss over HMRC’s new anti-avoidance rules for loans to director/shareholders, are you overlooking the most important point? Can borrowing from your company still be a tax and
cost-efficient benefit in kind?
Published 21.06.2013
At the end of your company’s last financial year your director’s loan account was in the red. Your accountant has suggested writing off what you owe to avoid a charge on the company, but is this the
most tax-efficient option?
Published 01.05.2019
Last year you used £15,000 of company money to buy yourself a new car. Both you and your company will have to declare the loan to HMRC. Is there a legitimate way to avoid having to do this?
Published 05.03.2014
Your company is doing well and so you plan to increase what you take from it. The question is, what’s the most tax-efficient way to do it? Usually dividends are the best option, but might there be a
more tax-efficient alternative?
Published 28.10.2014
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