If you borrow money to inject into your company, you can claim tax relief for the interest you pay. But not all borrowing or interest qualifies and there are pitfalls that can cause you to lose the
tax relief. How can you avoid these problems?
Published 14.02.2020
Your new company needs working capital. You could provide it by buying more shares in it or you could lend it the cash. The latter might produce a quicker return on your money plus tax savings. How
can you take advantage of these?
Published 28.03.2019
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
Your business needs a vehicle and some equipment. It will have to borrow to make these purchases. You personally have the cash which you could lend to the business, but might there be a more
tax-efficient option?
Published 06.02.2024
You’re thinking of personally raising some finance for your business. How can you make sure you get a tax deduction for any interest paid on this loan? Are there any traps for the unwary? Strictly
business
Published 21.10.2004
With all the fuss over HMRC’s new anti-avoidance rules for loans to director/shareholders, are you overlooking the most important point? Can borrowing from your company still be a tax and
cost-efficient benefit in kind?
Published 21.06.2013
Two years ago you started a company with a few colleagues. You all agreed to inject some money to get it started, but now you need the money for something else. You could just borrow it, but is there
a more tax-efficient alternative?
Published 14.06.2011
Our subscriber borrowed money to provide funds for his company. He’s claimed a tax deduction for the interest paid on the loan, but HMRC has started an enquiry saying that because the company is not
“close” no tax relief is due. Is this correct?
Published 14.11.2022
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
You started your company using a bank loan on which you claim tax relief for the interest you pay. The business has grown and you want to bring other family members in by giving them shares. Why
might this increase your income tax bill?
Published 09.02.2022