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Where Taxpayers and Advisers Meet

Director's Loan Confusion

Joined:Fri Oct 07, 2022 12:45 pm
Director's Loan Confusion

Postby triplecat » Fri Oct 07, 2022 12:55 pm

I'm looking into the feasibility of using a Directors loan to move cash to a high interest personal account with a different bank to reduce risk and get better interest.

HMRC seems to suggest...

1. The co. must keep accurate records of loan, repayments, and interest
2. No CT due provided repaid prior to 9 months after the end of the accounting period during which the loan was issued, and no additional loan within 30 days of repayment
3. After that, 32.5% CT payable but reclaimable up to 4 years after the date of the loan
4. Treat as benefit in kind, only if loan is greater than £10k and interest paid is below the beneficial loan rate (discounted).

Any help gratefully received. My accountant has gone AWOL.

Joined:Wed Aug 06, 2008 4:10 pm

Re: Director's Loan Confusion

Postby billypiper » Sun Jan 15, 2023 3:01 pm

Change your company bankers

Most banks offer high interest on Compony deposits



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