Very short director's loan?

[Moscow Mule]

Oh, and to the OP - if the loan is over £10k, you have to have the shareholders agreement to make the loan - so don't forget your paperwork.

[Wanderer]

Bearing in mind that the company money is not my money, what would you do if you knew your personal account was going to be heavily overdrawn due to cocking up dates on payments, and you had money in the company account?

Have a shareholder meeting where it's decided that the you will take a director's loan and write up the meeting minutes. Be sure to pay it back with 4% interest before the company year end so you don't have to declare it on the company's tax return and there shouldn't be any BIK.

If you fail to pay it back by the end of the year then you have to declare it and if it's still outstanding 9 months after the year end then you don't have to pay the 25% tax charge on it.