|
steebo888
Original Poster
716 posts
67 months
|
hello there
im starting a new business which will be a ltd company with 28k of my own money.
Am i right in saying the 28k can be put down as a directors loan into the company and if i draw out against this then there will be no tax implications?
also how long can the loan last for?
cheers
|
|
|
burwoodman
1,231 posts
115 months
|
Yes. Don't listen to any teeth sucking opinions on here. 100% yes
|
|
|
steebo888
Original Poster
716 posts
67 months
|
cheers
forgot to say that 23k is to buy the business and 5k for working capital and solicitors fees
is all 28k still ok as director loan?
|
|
|
burwoodman
1,231 posts
115 months
|
Yes because you are buying assets with cash or debt. Chat to your accountant but all good
|
|
|
sumo69
858 posts
89 months
|
The loan can be indefinite and it can also be made with an interest charge option - your choice really.
Depending on whether you would have any other taxable income, it may be preferential to extract a small salary and some dividend rather than solely repaying the loan.
Have you sat down with an accountant to go through this?
David
|
Advertisement
|
|
|
PurpleMoonlight
1,328 posts
26 months
|
steebo888 said: cheers
forgot to say that 23k is to buy the business and 5k for working capital and solicitors fees
is all 28k still ok as director loan? You will need to explain how you are structuring these. Are you buying the Ltd shares of the existing business? If not, are you establishing a new Ltd which will then be purchasing the trade and assets from the extsting business? If so, is the money you are putting into your Ltd purchasing shares or deemed a loan?
|
|
|
steebo888
Original Poster
716 posts
67 months
|
PurpleMoonlight said: You will need to explain how you are structuring these.
Are you buying the Ltd shares of the existing business?
If not, are you establishing a new Ltd which will then be purchasing the trade and assets from the extsting business?
If so, is the money you are putting into your Ltd purchasing shares or deemed a loan? Hi buying an existing sole trader business and creating a new ltd company. 23k is for the purchase or the lease (2k towards equipment) 5k for sols fees and operating cash i will be only director and i think shares will be set at £100 total
|
|
|
PurpleMoonlight
1,328 posts
26 months
|
Okay, in that case the £28,000 you put into the Ltd will be deemed a director loan and you can withdraw it free of income tax & NI whenever you like.
|
|
|
OdramaSwimLaden
1,814 posts
38 months
|
steebo888 said: hello there
im starting a new business which will be a ltd company with 28k of my own money.
Am i right in saying the 28k can be put down as a directors loan into the company and if i draw out against this then there will be no tax implications?
also how long can the loan last for?
cheers Yes. We're all assuming it your own money and in the bank tax paid though.
|
|
