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only way I see of using it without increase of self assessment taxes is keeping loan in company and then paying it back. so only using it as a backup if you have no clients.
Well it is a loan to help businesses survive, not fund mortgages...
only way I see of using it without increase of self assessment taxes is keeping loan in company and then paying it back. so only using it as a backup if you have no clients.
how would that work?
if you transfer the BBL amount to your own bank as a Loan then you have to pay back the loan in 9 months which would need to be via extra dividends which will get taxed.
If you transfer as dividends then you get taxed on the extra amount as you will not be able to stay in first tax band if you are paying yourself up to £38k to stay in lower tax band.
If you're not working through a LTD there are no dividends.
how would that work?
if you transfer the BBL amount to your own bank as a Loan then you have to pay back the loan in 9 months which would need to be via extra dividends which will get taxed.
If you transfer as dividends then you get taxed on the extra amount as you will not be able to stay in first tax band if you are paying yourself up to £38k to stay in lower tax band.
the whole using it to clear credit cards dont make sense
if you take out say £8k and cleared off the cards then you would need to take it as dividends and pay income tax on it after 12 months. So you be paying back loan plus tax.
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