Co. owes me money - should I charge interest?

[hugebrain]

Myco owes me about 60,000 pounds. Should I charge them interest?

If so, what rate should I charge?

Next year it seems even more important to avoid all of Gideon's nasty new taxes, so should I lend the company another 40,000 to put in my pension before the year is up? I assume interest payments are taxed at twenty odd percent at basic rate, but corporation tax would be reduced by a similar amount, so cheaper than salary with NI or dividends with the dividend tax?

[stek]

Myco owes me about 60,000 pounds. Should I charge them interest?

If so, what rate should I charge?

Next year it seems even more important to avoid all of Gideon's nasty new taxes, so should I lend the company another 40,000 to put in my pension before the year is up? I assume interest payments are taxed at twenty odd percent at basic rate, but corporation tax would be reduced by a similar amount, so cheaper than salary with NI or dividends with the dividend tax?

Why does it owe you 60k?

[northernladuk]

You thought about discussing your options with an accountant or is free advice from a set of numpties OK?

[Waldorf]

Myco owes me about 60,000 pounds. Should I charge them interest?

If so, what rate should I charge?

Next year it seems even more important to avoid all of Gideon's nasty new taxes, so should I lend the company another 40,000 to put in my pension before the year is up? I assume interest payments are taxed at twenty odd percent at basic rate, but corporation tax would be reduced by a similar amount, so cheaper than salary with NI or dividends with the dividend tax?

NO

Not worth the hassle plus you would have to deduct 20% tax, complete a form and send it to HMRC each quarter. It would reduce the profit and so amount available for dividends, so not tax efficient either.

[hugebrain]

NO

Not worth the hassle plus you would have to deduct 20% tax, complete a form and send it to HMRC each quarter. It would reduce the profit and so amount available for dividends, so not tax efficient either.

I thought they were getting rid of the tax you have to pay on interest up to 5k? So paying interest would save the 30 percent or so that I would have to pay in corporation tax and dividend tax doing it the normal way.

I guess I'll just have the company pay me back. Or, I could ask an accountant...

[Waldorf]

No, the tax free interest limit will be £1,000 and then not for very high rate tax payers. Your company would still need to deduct tax etc, any rebate would be done via your tax return and so it is not worth doing.