(2-Minute Read) Find out about the implications of lending your company money Can I lend my business money? Most small companies start trading with money borrowed from the directors, which can later be paid back. These loans are typically done through informal “director’s loans“. This loan doesn’t have to be in the form of money,… Read more »
Posts Tagged: directors loan
Non staff entertainment: Claiming VAT on entertaining on Valentine’s Day
Claiming VAT on entertaining non-staff is usually not allowed, but there are certain times when you can do it. The input VAT is usually not claimable on the costs of entertaining non-staff. This rule also applies to staff whose role is to look after the guests and make sure they enjoy themselves. It is possible, however,… Read more »
Reduce the cost of borrowing from your company
A director can borrow £10,000 from their company interest free. However, there are strict anti-avoidance rules which mean that the company has to pay. As the director shareholder of a company the net value of assets belongs to you, however, in law the company is a separate person. This means when you take… Read more »
Directors’s Loans and the importance of proper paper work !
As a director who is borrowing money from your company, it is imperative that you fully understanding how to treat the interest charged on the loans. Loaning money from the company can be a useful bonus, but there are two tax charges which can apply when you lend money to a director (if they… Read more »