Four directors ploughed 200k together into their company to purchase an office property. Fast forward 8 years, the company still owns the office property and rents out the offices, income covers expenses but the directors loans remain unpaid (possibly wont be repaid until mortgage is cleared or property is sold).
Anyway, the company is now starting to generate a profit and CT is payable - I have recommended the directors start charging interest on the loan, expense the ineterest and reduce profits and pay less CT. I want to advise that they backdate the interest for last 8 years. Anyone who can suggest any pitfalls to overcome? or offer any beads of wisdom that I need to think about before going down this route?