This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

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:698
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.


Return to “Business Tax”