using directors loan to offset ?

[reginald]

Is there much to be gained by maxing out the directors loan allowance (btw is this 2k or 5k ?) to bung into my offset mortgage, repay at year end, and repeat... Or just simpler to stick to extracting salary + divis ?

[northernladuk]

Is there much to be gained by maxing out the directors loan allowance (btw is this 2k or 5k ?) to bung into my offset mortgage, repay at year end, and repeat... Or just simpler to stick to extracting salary + divis ?

It's 5K and why not do both? Although saying that I am currently searching for a thread that I am sure said end to end directors loans are bad.

[northernladuk]

Here is interesting link as well.

http://forums.contractoruk.com/accou...-mortgage.html

and some more about running directors loan and the pitfalls/gotchas

http://forums.contractoruk.com/accou...n-account.html

http://forums.contractoruk.com/accou...-loan-how.html

[escapeUK]

Is there much to be gained by maxing out the directors loan allowance (btw is this 2k or 5k ?) to bung into my offset mortgage, repay at year end, and repeat... Or just simpler to stick to extracting salary + divis ?

I think it makes more sense to transfer all your the money you store up as corp tax / vat into the offset.

THEPUMA was going to send me some templates about how to do this properly, but he never did.

[northernladuk]

Good read up here for you

<snip>

[Alan @ BroomeAffinity]

You CAN use company money in an offset arrangement if the funds are held in trust by you on behalf of the company.

[northernladuk]

You CAN use company money in an offset arrangement if the funds are held in trust by you on behalf of the company.

This is the thread I think Just1morethan and escape were eluding to.

http://forums.contractoruk.com/accou...k-account.html

[prozak]

THE PUMA was supposed to email me details also.

I guess it is not so real after all.

[Wanderer]

THE PUMA was supposed to email me details also.
I guess it is not so real after all.

From what I understand, it was an idea and THEPUMA was looking for someone brave enough to try it out and present it to HMRC.