Hi,
I have had a company for 10 years doing software products, the last product didn't go that well and my company owes me a lot of money (it doesn't owe anyone else anything). I have a contract at the mo, and I think I am IR35 proof because the contract is worded well and the entrepreneurial side of the business is still going along, the test is if the business is self employed which it clearly is.
I have receipts for the debt and my research indicates I can just repay the debt out of company income with no tax consequences, I wouldn't pay any tax, just repay debt for about a year. I feel I have got to get the debt (to me) out the company or it can't go on, plus I think I have a legal duty as a director to repay creditors even if that is me.
Am I correct in thinking I can just get my company to repay me in this way out of contract income?
I have had a company for 10 years doing software products, the last product didn't go that well and my company owes me a lot of money (it doesn't owe anyone else anything). I have a contract at the mo, and I think I am IR35 proof because the contract is worded well and the entrepreneurial side of the business is still going along, the test is if the business is self employed which it clearly is.
I have receipts for the debt and my research indicates I can just repay the debt out of company income with no tax consequences, I wouldn't pay any tax, just repay debt for about a year. I feel I have got to get the debt (to me) out the company or it can't go on, plus I think I have a legal duty as a director to repay creditors even if that is me.
Am I correct in thinking I can just get my company to repay me in this way out of contract income?
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