Client wants to take some extra cash out from the company. He's within the basice rate tax band.
Option 1 - charge interest on his DLA which is substantially in credit and recieve a £1,000 savings allowance with the residual being taxed at 20%, but the company receives a deduction for the gross payment. You also have to file a CT61.
Option 2 - take out a dividend and pay tax at 7.5% on it, but will also have incurred corporation tax before this (say at 20%). However this also reduces retained earnings so reduces the tax burden when you close the company (it hold property so no ER).
I know you'll probably say run through the numbers, but is there a preferred option (1 or 2)?