Dividend / loan repayment . Whats best ?

Hi perhaps you can assist me with this question. We have funded the start of this business with re

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Hi  perhaps you can assist me with this question. 

We have funded the start of this business with regular subscriptions and director  loans. How long can we leave these in the business without paying these back out to people   Is there a corporate tax liability after the year end ?  We want to be able to take some loans amounts back or dividends this year  so wondered whether it would be better to. Take back from the loan amounts rather than. Dividend 

Replies (8)

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Stepurhan
By stepurhan
21st Jul 2022 08:04

Answering some of those questions would require assumptions to be made. Answering others would require a lot more information.

Best to engage an accountant. They will be able to sort out these questions, and possibly even address questions you did not know you had.

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By Tax is always taxing
21st Jul 2022 08:06

Its probably worth speaking to your accountant who will have the details of the loan structure and shareholder structure and will therefore be able to give you advice.

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By Leywood
21st Jul 2022 09:15

You need an Accountant, given your set up, both in the UK and in Gibraltar.

Asking a question providing only a snippet of the details expecting someone to give you Accountancy and Tax Advice is a bit naive to say the least. But this forum clearly states in the rules that it cannot provide such advice anyway.

In fact some rather big hints on treatment have already been given in your previous post. Which it has to be said had no interaction from you to the help provided, which is if nothing else a wee bit rude.

Who on earth advised you on the existing set up and why are you not now taking proper advice?

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By David Ex
21st Jul 2022 13:32

I can't decide whether the OP has a very high opinion of accountants - thinking we can magic up (correct) detailed technical advice in the absence of most of the relevant facts - or a very low one - believing that advice on complex, possibly cross-border, arrangements is available for free.

https://www.accountingweb.co.uk/any-answers/how-to-use-any-answers

“- All registered members who have logged into the site can respond to the questions. Please note that the people who answer are often professionals who are sharing their expertise for the greater good of the community.

They are not here to provide free accounting advice.

- Users are free to seek clarification for technical issues that are troubling them, but tax and accounting can be very complex. Any Answers conversations can get very involved around what the legislation says and how different people interpret the regulations. As one member wisely advised: “If you intend to plan a course of action based on what you read in here, you should instead be taking professional advice.””

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By Paul Crowley
21st Jul 2022 15:12

Time to accept that it is time to get a professional involved
And that professional cannot give advice without full details and getting answers to his questions

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By Tom Cross
21st Jul 2022 15:25

I see that you made an (initial) enquiry, on 16th July. Quite honestly, you seem to suggest that there are a number of individuals involved in this new company, or other organisation and, that being said, you are all "accountable" and would benefit from some (paid for) specialist advice.

I don't wish, or intend to cause offence but you need to face some hard facts. There is no such thing, as a free lunch.

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Replying to Tom Cross:
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By David Ex
21st Jul 2022 16:13

Tom Cross wrote:

… you seem to suggest that there are a number of individuals involved in this new company,

“a group of 30 teachers”, was the description. I wouldn’t put my money into a venture I didn’t control without being confident that there were some decent financial advice/structure/processes in place. Then again, I’m an accountant.

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