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Where Taxpayers and Advisers Meet

Director's Loan

Tolworth300
Posts:2
Joined:Wed Jan 18, 2017 1:37 am
Director's Loan

Postby Tolworth300 » Wed Jan 18, 2017 1:42 am

Would I be correct in thinking there is no tax liability incurred in a Directors Loan in the following circumstances:

1. Loan fully repaid within 9 months of the end of the company's financial year

2. No further loans from the company

3. Paid the company 3% interest on the loan.

Thanks

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Director's Loan

Postby pawncob » Wed Jan 18, 2017 11:49 am

Looks OK.
With a pinch of salt take what I say, but don't exceed your RDA

Tolworth300
Posts:2
Joined:Wed Jan 18, 2017 1:37 am

Re: Director's Loan

Postby Tolworth300 » Wed Jan 18, 2017 11:58 pm

Thanks for confirming my understanding of the rules


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