Directors loan

[Darren@UptonAccountants]

Directors Loan

My accountant (admittedly it was Giant) told me that it was £5000 per shareholder.

THe £5k limit applies to the balance on an individual directors loan and benefits in kind, not per shareholder.

[lfc69]

Is that £5K per year or the balance should never exceed £5K at any one time before BIK kick-in ?

[Bradley]

THe £5k limit applies to the balance on an individual directors loan and benefits in kind, not per shareholder.

It is per shareholder if it's a company with five or fewer shareholders or controlled by the Directors

[Tramline]

Its not the most tax efficient way of remunerating yourself as not only do you have to repay the money back to the company you also suffer the BIK tax. It would make more sense to pay out an interim dividend