I have a temporary cash crunch situation. I need to pay for something while I wait for my funds settle. They are likely to clear later next week. Is it okay to borrow £100k from my limited company just for a few days and pay it back next week?
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Can I borrow £100k from my limited company just for a few days?
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Originally posted by Code View PostI have a temporary cash crunch situation. I need to pay for something while I wait for my funds settle. They are likely to clear later next week. Is it okay to borrow £100k from my limited company just for a few days and pay it back next week? -
Originally posted by ChimpMaster View PostOf course. This is basic stuff that your accountant can advise on too.Comment
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Yes but you should probably document a loan of that size and also charge yourself daily interest at the HMRC listed rates to avoid a BIK charge.
It goes without saying that you should familiarise yourself with the risks of not repaying it.Comment
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Originally posted by TheCyclingProgrammer View PostYes but you should probably document a loan of that size and also charge yourself daily interest at the HMRC listed rates to avoid a BIK charge.
It goes without saying that you should familiarise yourself with the risks of not repaying it.
Am I ok if I pay daily interest (at HMRC listed rates) into the company bank account for the period ?
As I said it'll be only for a few days. I will be repaying it all in a week.Comment
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Originally posted by Code View PostThank you.
Am I ok if I pay daily interest (at HMRC listed rates) into the company bank account for the period ?
As I said it'll be only for a few days. I will be repaying it all in a week.
You might have daily limit on your business account will be you only issue
Sent from my iPhone using Contractor UK ForumComment
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Originally posted by Code View PostThank you.
Am I ok if I pay daily interest (at HMRC listed rates) into the company bank account for the period ?
As I said it'll be only for a few days. I will be repaying it all in a week.
No need for it be done now.
But in short. Yes. You pay any interest to the company, so it goes into the company back account.See You Next TuesdayComment
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And the interest is income that you can then withdraw at a later date
(subject to taxes and proper process being followed)Comment
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Originally posted by Code View PostThank you.
Am I ok if I pay daily interest (at HMRC listed rates) into the company bank account for the period ?
As I said it'll be only for a few days. I will be repaying it all in a week.Comment
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