Loan to a friend from LTD Loan to a friend from LTD - Page 3
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  1. #21

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    Quote Originally Posted by kolata View Post
    No, no chance to write off the loan, and to get the money for myself.
    I guess she can apply for a bank loan, but at ~4.5% minimum I don't see why the she needs to feed the bank
    Granted she will pay 3% to LTD, but this will stay in the LTD (after 20% corp tax on the 3%).
    Much cheaper than a bank loan.
    Why not send her to a p2p lender?
    No banks involved and no risk to you.
    Here's one https://www.zopa.com/

  2. #22

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    You consider your MIL a friend?

    Joke aside, if you are determined to do it, best way IMHO is (like others have already suggested) to take the money as a director loan and lend your MIL personally. Instead of charging her 3% interest just let her cover the BIK payable for the director loan.

  3. #23

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    Quote Originally Posted by sal View Post
    You consider your MIL a friend?

    Joke aside, if you are determined to do it, best way IMHO is (like others have already suggested) to take the money as a director loan and lend your MIL personally. Instead of charging her 3% interest just let her cover the BIK payable for the director loan.

    Are you suggesting that it is akin to a Fly suggesting a Venus Fly Trap is a friend?

  4. #24

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    In my mind if I lend someone money I also have be prepared to come in all guns blazing in the event it goes wrong. Doesn't matter what the fall out is as long as I get my money back. That is NOT an option when the MIL is involved. You are gonna be fighting her and your missus. There is the other factor they'll be less inclined to pay you back than anyone else.

    If they do decide to mess you about your company finances is going to be the loser and they won't appreciate that could open you up to unwanted scrutiny in a rather extreme case. Seems a hell of a lot of potential fall out for very little benefit.

    Interesting article about loans that specifically mentions loans to family members here although I suspect you've covered these points. The pertinent point is to speak to your accountant about it.
    Last edited by Contractor UK; 28th March 2017 at 11:54.
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  5. #25

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    The fact that this "friend" has to knock on your door for a loan means she can't get a normal loan anywhere else as her creditscore must be very very bad, which means chances of him repaying you are very close to zero

  6. #26

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    [QUOTE=northernladuk;2318020]In my mind if I lend someone money I also have be prepared to come in all guns blazing in the event it goes wrong. Doesn't matter what the fall out is as long as I get my money back. That is NOT an option when the MIL is involved. You are gonna be fighting her and your missus. There is the other factor they'll be less inclined to pay you back than anyone else.

    If they do decide to mess you about your company finances is going to be the loser and they won't appreciate that could open you up to unwanted scrutiny in a rather extreme case. Seems a hell of a lot of potential fall out for very little benefit.

    Interesting article about loans that specifically mentions loans to family members here although I suspect you've covered these points. The pertinent point is to speak to your accountant about it.

    Only usually one loser in that fight, hope the OP has cojones of steel
    Last edited by Contractor UK; 28th March 2017 at 11:54.

  7. #27

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    Thanks for your concerns guys. I consider this move to be very low risk.
    As you know there is a risk involved in going to the toilet as well. But we all go.

    My question was merely about the legality of it.
    As always very little help.

  8. #28

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    Quote Originally Posted by kolata View Post
    Thanks for your concerns guys. I consider this move to be very low risk.
    As you know there is a risk involved in going to the toilet as well.

    My question was merely about the legality of it.
    As always very little help.

    Absolute rubbish, you have had plenty of help.

    In fact, this type of whinging of "no help" heavily reminds me of a couple of other banned posters.
    If you want any extra help, just go and pay a professional.

  9. #29

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    Quote Originally Posted by kolata View Post
    As always very little help.
    You got what you paid for.
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  10. #30

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    Quote Originally Posted by northernladuk View Post
    You got what you paid for.
    Quote Originally Posted by MrMarkyMark View Post
    , just go and pay a professional.
    OK

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