Directors Loan

I have set up a new company recently and currently do not take all the cash out of the business which is not earning a very good interest rate.

If I loan the spare cash to my personal bank account, will this cause any tax or other problems

I was planning to effectively draw the cash out every month/2months and repay it all back just before the year end so that the year end accounts show a nil balance.

During the year I would also account for any dividends or salary payments by netting them off the loan account.
Mike Cane

Comments
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Yes it will be taxable

IanClark |

watch out...

chrisdxuk |

HMRC call it Bed and Breakfasting

newmoon |