Company paying Directors SA Tax Bill

Company paying Directors SA Tax Bill

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If a Company pays a Directors personal SA tax bill is it acceptable to charge (debit) the Directors Loan Account with the personal Tax and then for the DLA to be repaid (credited)  with a formal dividend. Are there any BinK issues with this? 

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RLI
By lionofludesch
14th Jan 2019 12:00

Fine by me.

Possible interest benefit, obviously, if the DLA is overdrawn.

Why not pay the dividend first ? Make your life easier.

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By JDBENJAMIN
15th Jan 2019 11:04

It's fine. I do that with many clients.

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By Michael Davies
15th Jan 2019 12:04

Strictly isn’t this covered by discharging a pecuniary liability and therefore PAYE ?

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Replying to Michael Davies:
RLI
By lionofludesch
15th Jan 2019 12:23

Not if it's charged to the DLA.

Especially if it's in credit.

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