Your business needs extra funds to buy equipment but it doesn’t have a track record for a bank loan, so you personally borrow the money and lend it to your company. What’s the most tax efficient way
it can pay you back?
Published 04.05.2011
As a money-making plan a friend has suggested lending some of your personal savings to your company. The idea is that it can pay you more interest than the bank does. It sounds interesting but are
there troublesome tax consequences?
Published 08.04.2021
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
To ease cash flow you’re leaving the dividends due to you in the company. But you want it to pay interest for having the use of your money. The trouble is it can’t afford to pay that either. Does the
tax system offer a silver lining to this cloud?
Published 29.03.2010
Your bookkeeper has suggested that as interest rates are high now is a good time to charge your company interest on your director’s loan account when it’s in credit. But wouldn’t that be less tax
efficient than taking dividend income?
Published 15.05.2023
Phasing in of the restriction for tax relief on finance costs began in 2017/18. The next stage takes effect on 6 April 2018. What do you need to know and how can you minimise the impact?
Published 19.01.2018
Where you borrow money from your company it counts as a taxable perk. The tax can be avoided by paying interest on the loan, but is it tax efficient or are you better off taking the tax hit?
Published 18.09.2017
Your director’s loan account is substantially in the red and likely to stay that way for a while. As this is a benefit in kind you’ll have to pay tax and your company, NI. Both can be avoided if you
pay interest on the debt but would it be tax efficient to do so?
Published 21.09.2022
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
Social lending continues to grow in popularity. This isn’t surprising considering the paltry interest rate currently paid by banks. But there’s a little known tax trap that could make a dent in your
return. What is this?
Published 05.03.2013