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
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
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
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
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
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
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
Borrowing from your company can result in it having to pay extra tax, but it can be avoided if you repay the debt within a set time period. What steps can you take to make sure repaying what you owe
is as tax efficient as possible?
Published 16.03.2015
A stiff tax for your company can arise if you borrow money from it. A colleague tells you it can be avoided if the loan is on commercial terms. Is she correct and are there other ways the tax bill
might be dodged?
Published 26.11.2018
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