£50K Interest Free Loan for 12 Months

[xenomorph]

Not if it’s a loan


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what do you mean?

[d000hg]

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.

Not if you're not working through a LTD

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[xenomorph]

Not if you're not working through a LTD

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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.

[d000hg]

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.

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[xenomorph]

If you're not working through a LTD there are no dividends.

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oh haha
i read that as not if you ARE working through LTD

[northernladuk]

oh haha
i read that as not if you ARE working through LTD

Don't forget that proof reader I mentioned for your contractual paperwork...

[xenomorph]

Don't forget that proof reader I mentioned for your contractual paperwork...

[simes]

Cater are still looking to do this through Santander.

Will update as and when.

[xenomorph]

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.

[northernladuk]

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...