Hi all,
Bed and breakfasting rules prevent one from paying down a directors loan and taking out another loan within 30 days (~a month).
If it was possible to obtain bridging finance from elsewhere (family or bank) for 1 month each year, would it still be tax efficient to have a rolling directors loan for 11 months out of the year? Are there any pitfalls that might make this an unattractive option?
My goal here is to make use of retained cash within the business without distributing dividends or breaking the law.
Any guidance much appreciated
Bed and breakfasting rules prevent one from paying down a directors loan and taking out another loan within 30 days (~a month).
If it was possible to obtain bridging finance from elsewhere (family or bank) for 1 month each year, would it still be tax efficient to have a rolling directors loan for 11 months out of the year? Are there any pitfalls that might make this an unattractive option?
My goal here is to make use of retained cash within the business without distributing dividends or breaking the law.
Any guidance much appreciated
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