Hi all,
I am the only director with 51% of shares. I plan to take a director's loan for more than £10000. My co will charge 3% interest on the loan.
Questions are:
1. Do I need to have a written resolution from a board meeting? I.e. something saying lts loans <name> £XXXX at 3% interest.
2. When I pay back there will be 2 amounts going to my ltd - the capital and the interest. How do I record the interest? I can not issue myself an invoice, then what? What about VAT on that interest?
3. Intentions and arrangements rule - I plan to repay the loan before the end of the accounting period in full. If I decide to take a new loan say 45 days after that, will the Intentions and arrangements rule apply?
I am the only director with 51% of shares. I plan to take a director's loan for more than £10000. My co will charge 3% interest on the loan.
Questions are:
1. Do I need to have a written resolution from a board meeting? I.e. something saying lts loans <name> £XXXX at 3% interest.
2. When I pay back there will be 2 amounts going to my ltd - the capital and the interest. How do I record the interest? I can not issue myself an invoice, then what? What about VAT on that interest?
3. Intentions and arrangements rule - I plan to repay the loan before the end of the accounting period in full. If I decide to take a new loan say 45 days after that, will the Intentions and arrangements rule apply?
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