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
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 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
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
Several years ago you injected your own cash into your company, but now you need some back. Your accountant says that where your company repays part of what it owes you it can trigger a tax charge.
Why, and how can it be avoided?
Published 16.04.2015
New rules apply to most directors who borrow money from their company. Until now if they repaid this within nine months of the end of its accounting period, no tax charge would arise. What’s changed?
Published 31.05.2013
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
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
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