Are there any disadvantages of keeping a directors loan running all year? I know I can have an interest free directors loan of up to £5000 without it being a benefit in kind. As long as it is paid off before the year end is there any downside to doing this. The advantage for me is that the money can be offset against my mortgage which means I get better interest than keeping it in the company account. I am wondering if I ever have to justify the reason for having the loan or for not repaying it when declaring dividends.
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