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Where Taxpayers and Advisers Meet

Director's Loan

andrewjohagan
Posts:1
Joined:Sat Aug 21, 2021 1:44 pm
Director's Loan

Postby andrewjohagan » Sat Aug 21, 2021 1:48 pm

Hi,

I am a director of a Ltd company from which I would like to take a personal loan of £50k. This would be repaid in full within 6-8 months. My salary is 36K. What would be the tax implications of this for myself as an individual and for the company?

Much appreciated.

Andrew

darthblingbling
Posts:417
Joined:Wed Aug 02, 2017 9:09 pm

Re: Director's Loan

Postby darthblingbling » Sat Aug 21, 2021 5:54 pm

The company would need to report a loan benefit on your P11D for the interest deemed to have arisen at HMRC's official rate of interest. Class 1A NIC would need to be paid by the company and you'd be subject to tax at your marginal rate.


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