Repayment of Directors Loan in 2.5 Months

[KickAss]

Hello
This is my first post so I apologies if I have done some mistake.
I have my limited company started in August 2012 and I am the sole director/Employee.
I recently had to take out 50,000 pounds for my Visa application (Requirement was to have my name on bank account which I cannot have on business account)
Any ways, So I took money out for around 2.5 months, I got my Visa and then I transferred money back in to company's account with Interest.
I now need to know, Do I have to pay any additional charges ?
I don't have much knowledge of accounts, but I guess this money I took out was not my salary/dividend, hence its a directors loan. Since I paid it back in less than 9 months, I believe S455 is not applicable.
So what Steps I have to do to make sure I have done every thing fair as per rules and regulations of HMRC ?
Cheers

[fullyautomatix]

What is this Visa that costs 50K ? Who did you give it to and how did you get it back ?

Something is not right with this and I am suspecting that a loophole is being exploited somewhere.

[stek]

What is this Visa that costs 50K ? Who did you give it to and how did you get it back ?

Something is not right with this and I am suspecting that a loophole is being exploited somewhere.

Sounds like Entrepreneur visa - you need to show the funds it's not the cost of the visa.

[fullyautomatix]

Sounds like Entrepreneur visa - you need to show the funds it's not the cost of the visa.

Ah, so another post explaining how to exploit Entrepreneur visa. Just why the government is so lax about these things I dont know. Arent you supposed to invest 50K in the UK and show that you are an Entrepreneur ? If so, taking a loan out to show 50K funds to get visa and then be on your merry way working as IT contractor undercutting the rest of us, sounds like a loophole exploitation to me.

[stek]

Ah, so another post explaining how to exploit Entrepreneur visa. Just why the government is so lax about these things I dont know. Arent you supposed to invest 50K in the UK and show that you are an Entrepreneur ? If so, taking a loan out to show 50K funds to get visa and then be on your merry way working as IT contractor undercutting the rest of us, sounds like a loophole exploitation to me.

And the funds need to be disposable, looks like the tax man is owed at least some of this, bit naughty.

Maybe the OP would like to clear this up?

[KickAss]

Ah, so another post explaining how to exploit Entrepreneur visa. Just why the government is so lax about these things I dont know. Arent you supposed to invest 50K in the UK and show that you are an Entrepreneur ? If so, taking a loan out to show 50K funds to get visa and then be on your merry way working as IT contractor undercutting the rest of us, sounds like a loophole exploitation to me.

This is an initial application, Hence we have to show that we have access to 50K money and then invest it in a period of 3 years. To show the access part it has to be on my name not company's name... even though this money is going to be invested in business. So this was the reason I had to move money to personal account and I have already moved money back to company's account.
I am genuinely trying to establish a business, else I would have declared as much dividend as I can and would have not cared about this 50K.

[Martin at NixonWilliams]

Hello
This is my first post so I apologies if I have done some mistake.
I have my limited company started in August 2012 and I am the sole director/Employee.
I recently had to take out 50,000 pounds for my Visa application (Requirement was to have my name on bank account which I cannot have on business account)
Any ways, So I took money out for around 2.5 months, I got my Visa and then I transferred money back in to company's account with Interest.
I now need to know, Do I have to pay any additional charges ?
I don't have much knowledge of accounts, but I guess this money I took out was not my salary/dividend, hence its a directors loan. Since I paid it back in less than 9 months, I believe S455 is not applicable.
So what Steps I have to do to make sure I have done every thing fair as per rules and regulations of HMRC ?
Cheers

As the loan exceeded £5,000 a benefit in kind arises, the deemed interest must therefore be calculated. Using the strict method this would be roughly £416.67 (£50,000 x 4% x 2.5/12 months).

You then have the following options:

a) Include the £416.67 on your P11d, paying the tax and employers NI.
b) Pay £416.67 into your company as interest, this mitigates the benefit value to nothing.
c) A mixture of the above, this can be more tax efficient but is probably not worth the hassle for what is likely to be a small saving.

It is difficult to advise you which way is best without knowing your circumstances, but in most cases paying the interest is the better option.

I hope this helps.

Martin

[northernladuk]

Would be interesting to know if this was 50k profit and not money set aside for CT and VAT which I suspect it is. If that is the case you are screwing your business to screw your visa. Nice, we will all be pleased to help you out with that situation....

[KickAss]

Would be interesting to know if this was 50k profit and not money set aside for CT and VAT which I suspect it is. If that is the case you are screwing your business to screw your visa. Nice, we will all be pleased to help you out with that situation....

No i am on flat rate vat n I am on a profit of 57k.
Ct is due after 18 months n its due in feb 2014

[TheFaQQer]

No i am on flat rate vat n I am on a profit of 57k.
Ct is due after 18 months n its due in feb 2014

The word is "and", not "n"