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Client credit card borrowings to launch business

Client credit card borrowings to launch business

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My client is personally borrowing and will pay 24% interest pa for initial working capital into his business.  He will be a high rate payer for this tax year but take low salary / high dividends. Would you suggest he (i) charges interest to the company at the same rate and the company files a CT61 or (ii) deducts the interest off the SA as quaifying loan interest relief? Thanks, in advance

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By Tax Dragon
09th Aug 2019 07:31

There are two separate loans, are there not? One he's taken out and one he's making. Treat each one appropriately and... voila.

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By MJShone
09th Aug 2019 07:48

Watch out for s384 ITA 2007 - credit card interest isn't relievable. Neither is overdraft interest.

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By JoF
09th Aug 2019 08:50

I seem to recall a similar post within the last couple of weeks - shouldnt be too hard to find in the 'latest' list.

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