Borrowing money from Business Short Term

[1yearlater]

I'm looking at buying a house in the near future, i have a reasonable deposit but I'm looking to up my it a little to save on some interest.

The way I work my LTD is to take small dividends when required and then save what my accountant has advised for CP, VAT etc to one side.

I guess there is nothing stopping me from dipping into that pot that has built up over the last 6months and then not pay myself dividends until the pot has got back upto what it was before and what it should be now.

Im only looking to take out say 4-6 grand out, which would take 6 weeks to put back in.

Has anyone ever done anything like this before? I guess its a short term loan from the business in effect? Is this leagal? Obviously im going to ask my accountant about this but thoughts i'd get shot down by you helpfull guys first!

Cheers!

[Troll]

I tend to take all the money out of the company, invest in Premium Bonds in my name, & pay back to the company when HMG requires ...probally illegal but who cares?

If I win the big one I'm quids in

HTH

[Spartacus]

If it's recorded as a loan and is paid back in full by the required deadline then there's nothing wrong with that whatsoever. You can stick the money on a horse or red 7 if you like as long as it gets paid back in time.

[Ardesco]

I think you can do £5,000 a year as a directors loan with no problems. I'm sure my accountant did that to my accounts the other year when I took a little bit more than I should have out