As a shareholder if you owe your company money it might result in an extra tax charge. This can be avoided by clearing the debt with a simple book entry or as a transfer of the cash required, but
which is the best option?
Published 17.09.2019
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
As the director shareholder of your own company you might borrow from it to cover personal expenses. The trouble is owing money to your company can trigger a hefty tax bill. How can you avoid this
without repaying what you owe?
Published 09.04.2018
Directors can indefinitely borrow up to £10,000 interest free from their companies at no tax cost to themselves. The trouble is the company will have to pay tax and tough anti-avoidance rules apply.
Is there a way to legitimately avoid them?
Published 07.01.2019
To ease cash flow you’re leaving the dividends due to you in the company. But you want it to pay interest for having the use of your money. The trouble is it can’t afford to pay that either. Does the
tax system offer a silver lining to this cloud?
Published 29.03.2010
If you borrow money from your company it might have to pay a special tax charge for the privilege of letting you use its cash. The tax bill can be avoided if the debt is repaid, but is it better for
your cash flow to pay it?
Published 19.11.2021
From April directors can borrow more from their company without being taxed. The downside is that the company still faces a tax bill. As a director how can you take advantage of the new tax break
without your company being hit?
Published 18.02.2014
One of our subscribers has decided to close a subsidiary of her main company. Her loan account with the subsidiary company is in the red by nearly £20,000. If the subsidiary is wound up, what tax
liabilities might this trigger?
Published 10.02.2021
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
Several years ago you made a loan to your company. Since then you’ve drawn on company cash to pay private expenses. On balance you’re in the black but HMRC says your cash drawing is separate from the
loan and is taxable. Can it be right?
Published 18.09.2023