Loan from Company ?

[Maxamus]

Im thinking of taking £1,500 from the business to finance my new car. Im going to be paying it back within 2 months.

What are the legal implications on of this?
Is this allowed?
Is a fee payable?

[minstrel]

Im thinking of taking £1,500 from the business to finance my new car. Im going to be paying it back within 2 months.

What are the legal implications on of this?
Is this allowed?
Is a fee payable?

As long as you are a Director, it's under £5K and you pay it back within 2 months (I think the limit is 9 months after company year end) then you are fine.

If it's over £5K then it's BIK and you have to pay interest on the whole amount.

[Maxamus]

thx minstrel