I have a Ltd company. I am the only director.
The company provides security services.
In Oct 2018 I decided to invest in a takeaway business. (I have previous experience in catering). I used money from my company to fund the takeaway business. The takeaway never really got going and made losses. I closed it after 6 months.
When I recently filed my tax return for 18/19 my accountant told me that because the takeaway was a different type of business I should have opened a new company. He informed me that all the money I had used would now be classed as a directors loan. The amount of the loan is 27000.
Between the security income and the money spent trying to make the takeaway work I have not made any profit.
My accountant has suggested paying back the loan (this is impossible) or raising a dividend of 17400. How do I do this? And how does this help? And how long do I have to do this?
The company also has a debt to a lender of 5500.
Thanks in advance for your advice.
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