The Objects Clause of most Limited Companies' Memorandums allow them to lend money.
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Paying divs to Company Secretary
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Originally posted by dotnetterYour not getting it, I personally dont have the money, and yes I can pay myself from the company and give it to her, but how would I pay it back to the company.
Or are you saying I just simply can't use the money in the company?
Basically the problem is paying the company back.
Possibly you could lend the money but you're making things complicated: just have the company pay you the income (and pay tax on it), and then you personally are able to lend her the money.
Or, if the problem is that the company needs the money back (e.g. to pay VAT) then the situation is that the company does not have the money to lend you. Be careful there.
Maybe then you simply can't afford to lend her the money. Is that the bit that you're not getting? I'm sorry if that seems harsh, but reality often is.Comment
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Well yeah thats the case, but I thought if the company can be paid back then it wouldn't be a problem, it just for a few weeks until the rail company send her a cheque.
Didnt think it would be much of a problem, but never mind suppose I'll have to speak to my accountant and ask him if it's possible.
Thanks for your insights though cheersComment
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I just thought...
Ill pay dividends to myself give her the money, and she can pay me back when the cheque arrives and ill just compensate the company by not taking dividends
next month
SortedComment
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It should be permissible for the company to loan it's Directors up to £5k via your Directors Loan Account, but it should be paid back before end of tax year because of BIK issues. I assume you're a Director. You need to make sure that the total amount the company owes you is no more than £5k, ie. including any expenses paid out of pocket which you have yet to be reimbursed.
If you're running a limited, you really do need to research and understand the implications of doing so and take advice from professionals (ie. not most of us here!) or you'll end up in the poo! In my opinion.It's my opinion and I'm entitled to it. www.areyoupopular.mobiComment
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Originally posted by oraclesmithIf you're running a limited, you really do need to research and understand the implications of doing so and take advice from professionals (ie. not most of us here!) or you'll end up in the poo! In my opinion.God made men. Sam Colt made them equal.Comment
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Who said anything about using it like a tax free piggy bank.
You do make me laugh.
My limited company is run fine, I have my tax and vat money sitting there ready to pay the returns, my question was simply could I take money out and put it back?
I don't care about paying tax on it if I have to, was just a simple inquiry, I have an accountant who I would ask about this stuff before I do anything, but he's away at the moment.
Also I've only been doing this for 6 months now, I'm still getting to grips with stuff, sorry If I sound stupid and all thatComment
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Originally posted by dotnetterMy limited company is run fine, I have my tax and vat money sitting there ready to pay the returns, my question was simply could I take money out and put it back?
AlanComment
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Originally posted by LangkawiThanks folks.
Am glad I asked now, as its obviously more complicated than I thought.
Will proceed with my mate as Comp Sec but will forget the payment & divs idea.
Cheers,
Alan
AFAIK placed can be hired to act as Coy Secretary. Also there is an act where the Secretary isnt needed anymore.Comment
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