Tax charge on borrowing from Ltd
Tax charge on borrowing from Ltd
Author
Discussion

PurpleMoonlight

Original Poster:

22,362 posts

188 months

Wednesday 16th March 2016
quotequote all
The Budget is increasing the tax charge (read interest free loan to HMRC) from 25% to 32.5%.

Can anyone confirm is the tax charge payable 9 months after the financial year end on the loan outstanding at that date, or at the time the loan is effected?

Eric Mc

125,823 posts

296 months

Wednesday 16th March 2016
quotequote all
Up to now it has been a charge that is collected through the Corporation tax system, so was payable at the time you would normally pay the Corporation Tax.

PurpleMoonlight

Original Poster:

22,362 posts

188 months

Wednesday 16th March 2016
quotequote all
Thanks Eric, that's what I thought.

The new rate is effective from 6th April, so may affect FYE from 9 months before.