Directors Loan with unequal share split

**Jessica@WhiteFieldTax** · 21 March 2013, 22:16

You can have £5k each - the 25:75 share split isn't relevant.

Bear in mind that even if you keep under the BIK, you still have 25% s455 to contend with unless repaid within 9 months of year end.

HTH

**Waldorf** · 21 March 2013, 22:31

Originally posted by gerrymcc View Post

Hi

I have been looking all over this forum for an answer to this question but cant find an exact answer that fits my situation. It may have been answered before but I just couldnt find it!!

My Ltd Co is in a 75% / 25% split with me an my wife. I want to take a directors loan from the business but want to keep it under the limit for BIK etc. So I will want to keep it below the £5k. My question is - can I take £5k as a directors loan and my wife also take £5k as a directors loan? Or is the total amount that we can take £5k - being split 75% / 25% with me having £3750 and my wife £1250?

Any help that yo could give wold be appreciated.

Begs the question, why?

I think this is too much hassle to be worth, you have to remember to repay the loan, make sure you do not exceed £5K etc, just take a dividend and be done with it!

**northernladuk** · 22 March 2013, 11:41

Originally posted by Waldorf View Post

Begs the question, why?

I think this is too much hassle to be worth, you have to remember to repay the loan, make sure you do not exceed £5K etc, just take a dividend and be done with it!

Have to say I am with this. If you are using it to buy something you are going to have to pay it back from dividends anyway. If you are using it to put in to an offset or something you have to be aware once you have taken it you must be seen to pay it back. You cannot put it back in and take out again to avoid the 25% (repayable) tax. That is bed and breakfasting.

**Pondlife** · 22 March 2013, 11:51

Originally posted by Waldorf View Post

Begs the question, why?

I think this is too much hassle to be worth, you have to remember to repay the loan, make sure you do not exceed £5K etc, just take a dividend and be done with it!

Maybe it's a short term loan to avoid taking divs this tax year above the threshold? It can be paid back in just over a fortnight avoiding going over the limit this year with very little (or no?) interest owed.

**Nathan SJD Accountancy** · 22 March 2013, 15:17

Originally posted by Pondlife View Post

Maybe it's a short term loan to avoid taking divs this tax year above the threshold? It can be paid back in just over a fortnight avoiding going over the limit this year with very little (or no?) interest owed.

That is what I thought too. Nice little way of delaying the payment of tax.

**Jessica@WhiteFieldTax** · 22 March 2013, 22:13

Originally posted by Nathan SJD Accountancy View Post

That is what I thought too. Nice little way of delaying the payment of tax.

Yep, used it for my partners accounts when she drew a bit more than I thought after the SA303 went in...

Directors Loan with unequal share split