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
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 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
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
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
One of our subscribers has decided to close a subsidiary of her main company. Her loan account with the subsidiary company is in the red by nearly £20,000. If the subsidiary is wound up, what tax
liabilities might this trigger?
Published 10.02.2021
Over the last year you needed to borrow money from your company which pushed your director’s loan account into the red. You now want to clear the debt. What are your options and what potential tax
pitfalls might there be?
Published 09.03.2021
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
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