Interest rate to charge company on DLA?

[22]

The initial message was deleted from this topic on 26 June 2024 at 17:35

[trickywoo]

You’ll need to pay income tax on the interest.

In the simplest terms that is why people don’t do it.

[Sy1441]

trickywoo said:

You’ll need to pay income tax on the interest.

In the simplest terms that is why people don’t do it.

This.

[dirty boy]

Depending on how much you've lent and how much you earn, don't forget individuals have a £1,000 0% band on savings interest (if at basic rate - £500 otherwise) so you may be able to charge a rate to utilise these allowances.

Document it, might save you a £380-£190 in corp tax and can at least offset what you might receive in a rubbish current account.

Speak to your accountant obviously.