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
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
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
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
You borrowed cash from your company last year and the plan was to clear the debt with a dividend from your company next tax year. The trouble is by then the new higher dividend tax rate will apply.
Should you therefore clear the debt sooner?
Published 27.09.2021
You have been in business for several years without any trouble from HMRC. However, your accountant says that the way your director’s loan account is managed might increase your tax bill. Why, and
can it be avoided?
Published 13.05.2020
One of our subscribers wants her company to lend money to two individuals who will use the cash to help fund a new business partnership which she’s also involved in. Will it count as a taxable
director’s loan?
Published 17.12.2020
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
A significant rise in the official rate of interest is expected for April 2023. If you’ve borrowed money from your company, what steps can you take to mitigate any extra tax and NI costs?
Published 02.02.2023