2 LTD companies - how to treat a loan
Discussion
One of my ltd companies A needed to use the credit card of another of my ltd companies B as it had a higher limit.
A also accrued some card interest as we paid minimum monthly until funds built up
A can now repay B but should A pay the card, transfer the cash or pay myself to pay the card ?
I'm wary not to attract a tax that's not necessary.
A also accrued some card interest as we paid minimum monthly until funds built up
A can now repay B but should A pay the card, transfer the cash or pay myself to pay the card ?
I'm wary not to attract a tax that's not necessary.
Eric Mc said:
Can the company that owes the money to the other company clear the debt from its own cash resources?
If it can, that is the best and least complex way to sort the matter out.
Hi Eric - yes Company A has the amount to repay the card and the interest payments company B has made on the card debt - should company A pay the card directly and transfer the interest to company B ? If it can, that is the best and least complex way to sort the matter out.
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