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Where Taxpayers and Advisers Meet

inter company loan

Posts: 1
Joined: Thu Oct 25, 2018 10:34 am

inter company loan

Postby martin36 » Thu Oct 25, 2018 10:44 am

Company A loans £15000 to company B in varying amounts within the same tax year. Both companies share the same MD but are completely different entities. Company A has paid for work to set up the office of company B. Company A is paying for an employee to consult for company B. Only the cash loans are in the accounts as inter company loans. The rest is recorded as work to be invoiced.
Company B has paid company A £13000. Is it best to reduce the intercompany loan by this amount or invoice them for work carried out? Which is best for tax purposes? I'm thinking get the loan paid off before the end of the financial year or does it not make any difference if it carries over?

Posts: 3069
Joined: Sat Feb 01, 2014 3:26 pm

Re: inter company loan

Postby bd6759 » Fri Oct 26, 2018 12:29 am

You need an accountant.

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