Consequences of ltd co money going into personal account; then back?

[dmuk]

What are the rules on the below?
What are the rules on the below - if done accidentally?

a £10k held in limited company bank account
b £10k transferred from limited company to personal saving account
c £10k earns interest of £1k in 3 months
d £11k transferred back from personal account to company account

If done intentionally?
From an accounting perspective I am assuming that 20% corp tax is due for b?
Personal tax is due on the £1k interest in c?
The return of the money back to the limited company incurs no tax?

If done in error?

[WordIsBond]

Whether done accidentally or intentionally, it's a director's loan (assuming you are a director).

So read up on director's loans, how much interest you have to pay to avoid a benefit, etc.

[northernladuk]

Accidently or intentially makes absolutely no difference. You can loan yourself up to 10k without incurring BiK as long it's paid back within 9 months after the current year end. A penny over or a day late and there are implications. You can need the Directors loan account to correct any issues at year end so not always the best idea to use it just to get 10k out but each to their own.

There are also regulations around bed and breakfasting I. E. Paying it back and taking it straight back out again.

It sounds like its free money but it's not. If you have a habit of withdrawing 10k 'accidently' then I'deave loans well alone.

Plenty of information on here and the web about directors loans...

And so as not to let the side down... These are questions you should be asking your accountant, not random people on the web.... Unless you want an answer you know your accountant won't give you
....

[Waldorf]

£1K interest on £10K in just 3 months is good, equivalent to an interest rate of 40% !!

The interest would be taxed personally and the £10K as a directors loan, if you paid the £1K interest to the company as well this would sit in the DL account as owing to you.

I would avoid loans, messy and not really worth the hassle.

[Dylan]

Where are you getting that return?

[MrMarkyMark]

Where are you getting that return?

Cuckoo Land.

HTH.

[LondonManc]

Where are you getting that return?

Barcelona v most teams at home 1/10

[SueEllen]

Barcelona v most teams at home 1/10

The only people who win from betting are the bookies.

And if you by accident you win too often they will close your account down......