You don't need to write a letter or anything, you simply book the transaction from your corp account to the directors loan account, in your company accounts. So it's clear what has happened.
Strictly, the directors loan account is for you to make loans to the company. But no-one really cares.
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SO i can take £2,000 from the money set aside for CT and pay it back a few months before it is due to the taxman....?
How do i record it?
Can i simply print out a letter printed on company headed paper saying a loan has bene made out to the director and signed by the company secretary?
PS. I've read somewhere that the loan must be paid back within 9 months.......Last edited by Maxamus; 26 September 2007, 10:39.Leave a comment:
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NAA but pretty sure:
You can take up to £5k without it being taxable. If a loan exceeds £5k at any time in the year all loans in the year become taxable. You are not obliged to pay interest or pay it back within any specific period.Leave a comment:
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As a company director it is completely up to you, just be aware of the following:
1. I think loans have to be approved by the board (could be wrong on this), if there is only you as a director then don't worry.
2. Don't need to charge any interest at all if you don't want to.
3. Make sure the money is back before the corporation tax is due.
4. I think there is a limit on the amount of money a company can loan to a director, I think the limit is about 5k.
All of these points are just guidelines on things to research as I am not 100% sure
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Directors Loan ?
Can i take a loan from the money set aside for CT?
If so, how much? do i pay interest? time limits to pay back? etc etc etc
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