Loans TO MyCo - Contractor UK Bulletin Board

Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:

You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.

TheFaQQer replied

23 August 2007, 20:48
Yes - you can even charge interest on the loan, at an above market rate, but I have no idea whether that is more tax efficient or not.

Loan is better than the investment though.
Leave a comment:
Mustang started a topic Loans TO MyCo

23 August 2007, 15:37
Loans TO MyCo

If I want to temporarily (2-3 months) inject money into MyCo, am I right in saying that it is better to do this via a loan to the company (which can then be paid back to me) than by investing in the money and drawing it out as a dividend?

My logic behind this is that a dividend may attract tax but a loan does not.

Can any one suggest an alternative way or fault my logic?

TIA
Tags: None

Working...

X