Options for borrowing cash from the company

[lukemg]

I have taken salary and dividends up to high rate level but need to borrow another 30k for a few months. Don't want to cash in share investments at the moment as timing isn't great.
Can I borrow from the company ? Do I have to pay it back with interest - isn't that just paying myself interest in effect ?
What interest rate am I looking at ?

Is there anything else I'm missing ?

Thanks in advance for any assistance.

[Paralytic]

I have taken salary and dividends up to high rate level but need to borrow another 30k for a few months. Don't want to cash in share investments at the moment as timing isn't great.
Can I borrow from the company ? Do I have to pay it back with interest - isn't that just paying myself interest in effect ?
What interest rate am I looking at ?

Is there anything else I'm missing ?

Thanks in advance for any assistance.

Taking your questions in order

Yes, yes/maybe, no, market rates, yes.

Speak to your accountant. There are well defined rules around director loans, how much you can borrow, and for how long, and your choices have tax implications, some punitive if you get them "wrong".

(sorry NLUK, beat you to it )

[jamesbrown]

Essentially, any loan over £10k has been intentionally made a massive PITA to account for, so the answer is that you can, but the better answer is that you probably shouldn't. Regarding interest, your company pays CT on that. As above, the rules are a bit fiddly regarding amounts and timeframes and associated paperwork (CT600 and P11D), so it's better to ask your accountant for a rundown.

[eek]

1) ask you accountant - if you don't have one find one.
2) as jamesbrown points out once you go above £10,000 this gets really complex, temporarily expensive and time consuming.

And you will still need to repay the money so it may just be better to take the money (or at least £20,000) of it now via dividends depending on your needs.