WWS ^
Personally I try not too but occasionally I don't see a problem with it.
Back in Jan I bought a new car which I borrowed 16k from the company, come April 6th still pre-year-end, I took a large div and paid it back with 4% interest, as far as I am aware this is acceptable (legal) and tax efficient.
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Reply to: Borrowing from own LTD company.
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Previously on "Borrowing from own LTD company."
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Originally posted by MarillionFan View PostBearing in mind I know I have to pay some interest on a loan. Can I take the £33k out for a 6 week short-term directors loan or is there an insolvency issue here???.
There is thread with a summary of how to do directors loans. Basically, pay it back with interest at the approved rate and understand the significance of the loan being outstanding at the company year end date and at the year end + 9 months.
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Why dont you just pay a large divi, and this ensure that there is enough to pay your tax at year end?
(NB I'm probably speaking out of my arse!)
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Originally posted by Pondlife View PostNot sure you should be paying that out of the company account matey.
Jesus...
(just to keep Notascooby happy)
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Originally posted by MarillionFan View PostHave not discussed with my accountant yet, but was wondering what the rules are on taking a loan from your LTD for a short period of time.
Lets say for example you have £40k in your bank account.
£20k is put aside for corporation tax for 2011/2012 that needs to be paid in Sept 2012.
£5k put aside for VAT to be paid in a few months.
£8k put aside for Self Assessment tax
Bearing in mind I know I have to pay some interest on a loan. Can I take the £33k out for a 6 week short-term directors loan or is there an insolvency issue here???
I should add, I'm happy to take loans against the LTD for money I know will be paid out in divvies, this is about going into HMRCs money.
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Originally posted by Notascooby View PostWhere was the abuse about not using google - this has been asked lots of times already, are you sure you know what you're doing, don't mix company money and personal money and of course - are you cut out for contracting?
Paaah it's double standards in here sometimes.
Also that advice is for noobs.
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Originally posted by MarillionFan View PostHopefully a property in here. If the price is right.
http://www.strakers.co.uk/pdf/Strake...1232010177.pdf
Some great looking properties there. Some of them no brainers but some need some vision it seems.
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Where was the abuse about not using google - this has been asked lots of times already, are you sure you know what you're doing, don't mix company money and personal money and of course - are you cut out for contracting?
Paaah it's double standards in here sometimes.
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Originally posted by northernladuk View PostOhh what you getting???
http://www.strakers.co.uk/pdf/Strake...1232010177.pdf
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Originally posted by MarillionFan View Post(Oh and the reason. I'm off to a property auction) :-)
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Originally posted by Clare@InTouch View PostThat's brilliant, sounds just like something Craig would say......
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Originally posted by northernladuk View PostFound it...
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Originally posted by Clare@InTouch View PostAny money you take that is not wages, expenses or dividends is a loan, and there are 2 separate issues:
Any loan over £5,000 will be a benefit in kind, and you’ll pay tax on the deemed value of any interest you’ve saved by not going to a bank. Keep in mind this is the total value of money you owe the company, so if you take a loan of £5,000 and then overpay your wages by £2 then the loan is £5,002 and becomes taxable. You can avoid the BIK by paying interest at 4%.
Any loans outstanding at the balance sheet date (company yearend) have to be disclosed in the accounts and on the company tax return. If they are not repaid within 9 months of the year end then the company will pay extra Corporation Tax of 25% of the loan value. This extra 25% is repaid to the company by HMRC when you repay the loan to the company. You should avoid repaying a loan and then taking it out again soon after as it’s an obvious avoidance tactic HMRC call bed & breakfasting. They will see through it and tax it as if it had never been repaid.
(Oh and the reason. I'm off to a property auction) :-)
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Found it...
Any money you take that is not wages, expenses or dividends is a loan, and there are 2 separate issues:
Any loan over £5,000 will be a benefit in kind, and you’ll pay tax on the deemed value of any interest you’ve saved by not going to a bank. Keep in mind this is the total value of money you owe the company, so if you take a loan of £5,000 and then overpay your wages by £2 then the loan is £5,002 and becomes taxable. You can avoid the BIK by paying interest at 4%.
Any loans outstanding at the balance sheet date (company yearend) have to be disclosed in the accounts and on the company tax return. If they are not repaid within 9 months of the year end then the company will pay extra Corporation Tax of 25% of the loan value. This extra 25% is repaid to the company by HMRC when you repay the loan to the company. You should avoid repaying a loan and then taking it out again soon after as it’s an obvious avoidance tactic HMRC call bed & breakfasting. They will see through it and tax it as if it had never been repaid.
Leave a comment:
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