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
At the end of your company’s last financial year you owed it money. This can trigger a hefty tax bill for your company but it can be avoided if the debt is cleared. There are different ways to do
this but which is the most tax efficient?
Published 20.05.2021
As a director and major shareholder you use your company credit card to pay for personal expenses from time to time. You can clear the debt by repaying it or get the company to write it off. Does it
matter how and when you do this?
Published 22.01.2019
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
Your business needs extra funds to buy equipment but it doesn’t have a track record for a bank loan, so you personally borrow the money and lend it to your company. What’s the most tax efficient way
it can pay you back?
Published 04.05.2011
Your company’s annual accounts have recently been drafted. However, under “debtors” they include overdrawn directors’ loan accounts. What’s the most tax efficient way of clearing these?
Published 21.06.2007
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
Where you borrow money from your company it counts as a taxable perk. The tax can be avoided by paying interest on the loan, but is it tax efficient or are you better off taking the tax hit?
Published 18.09.2017
As a small business owner you might be able to fall back on its cash reserves during the coronavirus lockdown. If so, what are the longer-term tax and NI consequences for you and your business?
Published 16.04.2020
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