£50K Interest Free Loan for 12 Months

[elsergiovolador]

In one year's time, the HMRC will decide these loans are disguised remuneration and ask to pay PAYE on them plus interest and a fine.

Thoughts?

[ladymuck]

In one year's time, the HMRC will decide these loans are disguised remuneration and ask to pay PAYE on them plus interest and a fine.

Thoughts?

Well there's definitely a tax break to be had in the interest free period

[BlueSharp]

Barclays computer says no to me. Time to email my account manager.

[Paralytic]

In one year's time, the HMRC will decide these loans are disguised remuneration and ask to pay PAYE on them plus interest and a fine.

Thoughts?

No chance. They are loans to the company.

[northernladuk]

In one year's time, the HMRC will decide these loans are disguised remuneration and ask to pay PAYE on them plus interest and a fine.

Thoughts?

Yeah.. change the record.

[vwdan]

In one year's time, the HMRC will decide these loans are disguised remuneration and ask to pay PAYE on them plus interest and a fine.

Thoughts?

Disguised in what possible way? The loan needs paying back

[elsergiovolador]

Disguised in what possible way? The loan needs paying back

HMRC could argue that there would be a way for you to withdraw the money and close the company (regardless if it makes sense) - so effect would be that you get the money and don't have to pay back.
They can make anything up and there is no accountability.

[vwdan]

HMRC could argue that there would be a way for you to withdraw the money and close the company (regardless if it makes sense) - so effect would be that you get the money and don't have to pay back.
They can make anything up and there is no accountability.

But if you don't close the company, that didn't happen. A lot of things *could* happen - fortunately, our legal system doesn't work on that basis.

I agree taking the cash, paying it out as dividends and then winding up the company would put you in a very sticky place indeed - but nobody is suggesting that.

[elsergiovolador]

But if you don't close the company, that didn't happen. A lot of things *could* happen - fortunately, our legal system doesn't work on that basis.

I agree taking the cash, paying it out as dividends and then winding up the company would put you in a very sticky place indeed - but nobody is suggesting that.

There is very likely scenario that potential clients will be too afraid to engage "outside IR35" and you end up not being able to pay the loan back.

[b0redom]

Why does the inside/outside IR35 thing have any relevance? If you don't think you'll be able to pay it back, don't borrow it?