I have a small limited company, now in the third year of operation. The business made a loss (setup costs) in the first year, a tiny profit in the second year and expects to make more profit in the current year. The setup costs were paid from my personal bank account. I've filed the first year tax return with the loss carried forward. I understand that this loss will be used to offset future profit. However, my question is how can I recoup the loss from my business? Can I transfer the value to my bank account and call it Director's loan payment? For example,
1st year loss (setup costs): £5500, 2nd year profit: £500, 3rd year expected gross profit: £6000;
This gives potential 3rd year net profit: £6000 - £5500 + £500 = £1000. If I pay corporation tax of £200, I'll have £5800 cash left in the company account. However, £5000 of this cash is carried forward loss. Is it okay to withdraw this money? If yes, will this go into Director's Loan Account (debit)?
Thanks for your help.