PALacc
Blogger
Share this content
0
394

Director charging interest to a company on loan taken out

Director charging interest to a company on loan...

A director took out a personal credit card and a loan a few years back and has solely funding the company cash flow.

No interest has ever been included on these items.

Is it possible now for the company to charge interest for these amounts, pay the tax due and then the director put on their tax return with the associated expense so the net effect is nil? Given that the periods the interest was actually charged may have been for previous years is it ok to to this now as a lump sum?

As the repayments have been made and treated as drawings as opposed to the original capital introduced the dir current account balance is now considerably lower than it was.

Replies

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.

Share this content