Originally posted by ChimpMaster
View Post
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
2 day loan from Ltd
Collapse
X
-
---
Former member of IPSE.
---
Many a mickle makes a muckle.
--- -
Originally posted by BlasterBates View PostI would have thought you could delay payment by 2 days with the car dealer.See You Next TuesdayComment
-
For loans over £10K, you have to pay interest to YourCo at the official rate, or more. The official rate is 2.5%.
The amount of interest you pay is 2.5% * loan balance * whole months the loan is outstanding / 12. Beneficial loan arrangements (480: Chapter 17) - GOV.UK.
The number of whole months the loan will be outstanding is zero.
So, you have to pay interest, but the interest due will be zero.
Confirm with your accountant, of course. But I can't see any reason you can't do this.
I'd definitely recommend clear paperwork with a minute of a board meeting confirming the loan, the term and amount. I'd make it terminate the 5th, personally, just in case your money is delayed, but so as to terminate it in the same tax month in which it was issued. I don't think it matters if it is outstanding for less than 30 days, but I wouldn't want to give HMRC any wiggle room for claiming it was a month since it crossed tax months. That's probably an excess of caution, however, but it's what I'd do.Comment
-
Originally posted by WordIsBond View PostFor loans over £10K, you have to pay interest to YourCo at the official rate, or more. The official rate is 2.5%.
The amount of interest you pay is 2.5% * loan balance * whole months the loan is outstanding / 12. Beneficial loan arrangements (480: Chapter 17) - GOV.UK.
The number of whole months the loan will be outstanding is zero.
So, you have to pay interest, but the interest due will be zero.
Confirm with your accountant, of course. But I can't see any reason you can't do this.
I'd definitely recommend clear paperwork with a minute of a board meeting confirming the loan, the term and amount. I'd make it terminate the 5th, personally, just in case your money is delayed, but so as to terminate it in the same tax month in which it was issued. I don't think it matters if it is outstanding for less than 30 days, but I wouldn't want to give HMRC any wiggle room for claiming it was a month since it crossed tax months. That's probably an excess of caution, however, but it's what I'd do.
It’s for 2 days, do it buy car
Sent from my iPhone using Contractor UK ForumComment
-
Originally posted by TheCyclingProgrammer View PostNo major implications if it’s repaid in 2 days and the existing loan is repaid before the 9 month deadline following the end of your financial year.Originally posted by ladymuck View PostIf you can avoid there being any loan outstanding at year end, that's bestOriginally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.Comment
-
Originally posted by SimonMac View PostI thought the loan has to be repaid 9 months after the end of the financial year? Why is it heat to have it cleared at the end of the financial year?
Yes it does have to be repaid by then but if you don't have anything outstanding at year end, it's one less excuse for HMRC to want to have a poke aboutComment
-
Originally posted by ladymuck View PostThat's not what I said.
Yes it does have to be repaid by then but if you don't have anything outstanding at year end, it's one less excuse for HMRC to want to have a poke aboutOriginally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.Comment
-
Originally posted by SimonMac View PostAh fair enoughComment
-
Originally posted by ladymuck View PostMy tin foil hat says HMRC may want to see evidence of repayment and while they've got the hood open let's have a little look about...
No more friendly fire
Sent from my iPhone using Contractor UK ForumComment
-
Originally posted by ladymuck View PostMy tin foil hat says HMRC may want to see evidence of repayment and while they've got the hood open let's have a little look about...
Bad bad advise
Sent from my iPhone using Contractor UK ForumComment
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment