• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Loans TO MyCo

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Loans TO MyCo

    If I want to temporarily (2-3 months) inject money into MyCo, am I right in saying that it is better to do this via a loan to the company (which can then be paid back to me) than by investing in the money and drawing it out as a dividend?

    My logic behind this is that a dividend may attract tax but a loan does not.

    Can any one suggest an alternative way or fault my logic?

    TIA

    #2
    Yes - you can even charge interest on the loan, at an above market rate, but I have no idea whether that is more tax efficient or not.

    Loan is better than the investment though.
    Best Forum Advisor 2014
    Work in the public sector? You can read my FAQ here
    Click here to get 15% off your first year's IPSE membership

    Comment

    Working...
    X