Director's Loan to top up ISA before end of year

[Willapp]

So I want to top up my personal ISA before the end of the financial year as I've not used up much of this year's allowance. Due to the fact that I was employed for most of the tax year, I have used up nearly all of my basic rate allowance so any further dividends are going to be taxed at the higher rate.

I have quite a bit of profit sitting in the company account so the question is, can I transfer up to £5k of this money into my personal ISA as a Director's Loan before the end of the tax year, and then repay the money after 5th April without incurring any penalties?

[Kenny@MyAccountantFriend]

You can take a loan up to 10,000 from the company interest free or without it being seen as a benefit in kind (if not paying interest)

Provided the loan is repaid within 9 months of your company year end there would be no tax implications for the company either.

Therefore there you could take the loan if required.

[ASB]

If your intent is genuinely to transfer from your co. Account to your isa it might be better to pay it to your personal account first. Strictly it should not matter of course.

[PerfectStorm]

https://www.gov.uk/directors-loans/y...-company-money

[Willapp]

Okay so based on that information, if £5k is all I wanted to put into the ISA then it should be fine. Repaying the loan is no issue - I would just write it off against future dividends not taken so it will balance itself out in the new tax year.

Thanks for the help.

[ASB]

You won't write it off.

The loan will be debited to the directors account. The dividend will be declared and cedited reducing the balance to nil.

So, yes, it should be offset.

[Willapp]

You won't write it off.

The loan will be debited to the directors account. The dividend will be declared and credited reducing the balance to nil.

So, yes, it should be offset.

Yes sorry that's what I meant, I knew "writing off" was the wrong terminology but it seemed the easiest way to describe it!