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’s a common tax problem for companies that share resources if one can’t afford to pay its way and the other one foots the bill. What is it, and how was the position improved by the Budget?
Published 24.06.2009
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
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
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
You lent money to your company to get it off the ground. It’s still struggling and you want to write off some of the debt to help. Your accountant says this could create extra tax liabilities. What
are they and is there a more tax-efficient alternative?
Published 03.03.2020
Your company could achieve so much more with another round of funding. And you’ve found an individual who’s agreed to invest but on the proviso that your existing loan to the company is waived. What
should you do?
Published 11.10.2007
If your company owes you money, it can pay interest to compensate you. But the Taxman says that it must deduct basic rate tax from whatever it pays to you and then pass it over to him every three
months. Is there a way to avoid this?
Published 05.05.2010
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
One of our subscribers repaid the money she owed her company to avoid a tax charge, but a few weeks later, in the next financial year, borrowed more. Will the new anti-avoidance rules land her
company with a tax bill?
Published 04.04.2014