Originally posted by d000hg
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Originally posted by d000hg
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You'd have to look at your personal income situation and crunch some numbers as the interest could be covered by the personal savings allowance. The gross interest is deductible in the company accounts so you save 19% CT too. If you have an accountant, have a chat with them and get them to work through some numbers e.g. if you decided to charge the company 10% interest per annum then what would the overall tax saving be. If you're a basic rate tax payer then you'll find you're better off by £150. Now you're thinking, is it worth a tax saving of £150 for the hassle of completing the admin and potentially getting fined for not filing a CT61 on time each quarter? The answer is yes because the company doesn't just owe you the initial £50k.
It owes you the £4k interest it's been charged which has either been physically paid to you or it's credited to your loan account for withdrawal later.
Originally posted by d000hg
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