The situation is this:
Husband is director/shareholder, wife is shareholder, they want a loan from the company. Can they take £4900 each to keep under the benefit in kind limit or would they be deemed to be the directors by virtue of their relationship?
I've had a look and can't seem to find the answer.
Thanks in advance for anyone that can help me.
Replies (6)
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Yes
Be careful, the £5,000 limit applies to loans to employees, the fact that one is also a director is irrelevant.
In addition you need to be aware of the rukes under s.455 Corporation Act 2010 regarding loans to participators.
It includes relatives
The BIK legislation applies to loans made to the employee or a relative of the employee, so the £5K limit will apply to both loans.
For 2014/15 the threshold increases to £10K though.
Steve
What do you think in the case that the wife is also a director of the company?
I would think in those circumstances she has enough responsibilities to merit her own £5k limit - do you agree?
Gosh...
... what a novel idea. Giving the fairer sex a bit of responsibility. How very modern! :)
Yes. I agree. Just answer the question syndrome going on over here.