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steebo888

Original Poster:

784 posts

84 months

[news] 
Friday 5th October 2012 quote quote all
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

2,203 posts

132 months

[news] 
Friday 5th October 2012 quote quote all
Yes. Don't listen to any teeth sucking opinions on here. 100% yes

steebo888

Original Poster:

784 posts

84 months

[news] 
Friday 5th October 2012 quote quote all
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

2,203 posts

132 months

[news] 
Friday 5th October 2012 quote quote all
Yes because you are buying assets with cash or debt. Chat to your accountant but all good

sumo69

1,624 posts

106 months

[news] 
Friday 5th October 2012 quote quote all
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
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PurpleMoonlight

2,789 posts

43 months

[news] 
Saturday 6th October 2012 quote quote all
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:

784 posts

84 months

[news] 
Saturday 6th October 2012 quote quote all
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

2,789 posts

43 months

[news] 
Sunday 7th October 2012 quote quote all
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

1,931 posts

55 months

[news] 
Monday 8th October 2012 quote quote all
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.
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