Putting company money on your mortgage

[plq]

Does anyone know if the following practice is OK ?

On 6th April, put the 60 grand sat in your limited company bank account onto you mortgage, then at year end 31st October put it back in the company, back to mortgage on 1st November, and on 5th april the following year, take it back to the company again. I have a "one account" which makes this easy

Any views or experience on this would be appreciated

ta

[MrsGoof]

I though there were rules re director loans re this practice.

I'm sure malvino will be along to cut of your danglers

[Pondlife]

I thought that there was a limit to directors loans of £5K before it was classed as BIK and you'd be taxed on the appropriate interest that would be applicable to the loan amount.

IANAA etc

[Lockhouse]

You'll get taxed on it as a BIK (at the very least), not to mention the act of taking company money out way over the director's loan limits and stuffing it in a personal account with all the implications that entails. You'll also hang out a flag which says to HMRC "I'm a dodgy geezer come and ream me".

[malvolio]

Bugger, no need to join in now...

[Pondlife]

Bugger, no need to join in now...

You could always make a reference to your forehead and some vertical brick structure

[pickle]

Any views or experience on this would be appreciated

Yes. Idiot. Next.

[scooterscot]

RBS Business account

There may be a solution. I assume you want to transfer money to your mortgage account so that you’ll pay less interest on the amount borrowed? With the RBS business account you can leave the money where it is and use it to offset interest on a personnel mortgage for instance, nice….

Have a look:
http://www.rbs.co.uk/Small_Business/...ts/default.htm

[Lockhouse]

Read the small print on the RBS account numpty

Sole traders and simple partnerships only - LTDs need not apply.

[scooterscot]

well that sucks - there must be way...