Hi,
Apologies if i am raking over old ground but i did a search which came up with 20 pages of results and although i read those which i thought might be relevant, i couldnt find anything to answer my questions so i am hoping someone here can help me please.
I need to get my hands on a relatively small amount - ~£3200 - which will be paid back in full in about 6 - 8 weeks.
Now i could take the money from my savings account which would lose me interest, not a great deal i know but if i can avoid then why not. Or i could use my overdraft but that would obviously cost me even more.
So i am thinking about a Directors Loan. It is within the £5k limit that many threads suggest is the legal (?) limit and will be paid back well before my Tax Year end, there are sufficient funds within the Company account to cover this short term loan so i dont think there are any problems there.
My queries are to do with how it is recorded. Do i need to produce any kind of certification / agreement to detail the loan, amount etc and when it has been repaid?
Is there anything else that i need to record / take account of?
I know i could also award the shareholders a dividend - which i have not discounted - but i am 'planning for the future' and dont want to take out more money than is required, well not at this moment.
Anyway, all help / information welcome.
Regards
Alan
Apologies if i am raking over old ground but i did a search which came up with 20 pages of results and although i read those which i thought might be relevant, i couldnt find anything to answer my questions so i am hoping someone here can help me please.
I need to get my hands on a relatively small amount - ~£3200 - which will be paid back in full in about 6 - 8 weeks.
Now i could take the money from my savings account which would lose me interest, not a great deal i know but if i can avoid then why not. Or i could use my overdraft but that would obviously cost me even more.
So i am thinking about a Directors Loan. It is within the £5k limit that many threads suggest is the legal (?) limit and will be paid back well before my Tax Year end, there are sufficient funds within the Company account to cover this short term loan so i dont think there are any problems there.
My queries are to do with how it is recorded. Do i need to produce any kind of certification / agreement to detail the loan, amount etc and when it has been repaid?
Is there anything else that i need to record / take account of?
I know i could also award the shareholders a dividend - which i have not discounted - but i am 'planning for the future' and dont want to take out more money than is required, well not at this moment.
Anyway, all help / information welcome.
Regards
Alan
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