As an owner-manager of your business do you often end up in the situation where your company lends you money that you later pay back by declaring yourself additional salary or dividends? A loan can be created not only by withdrawing cash directly from the business but also by the business paying private expenses on your behalf.

Does your company occasionally lend money to your employees – to help them pay for a season ticket or get them over some personal financial problems?

You may not even realise that you are making loans to yourself or your employees but may subsequently get caught by HMRC rules that will cost you significant amounts in terms of tax and possible interest and penalties.

This area is a bit of a minefield and needs some careful consideration to get the structure of any loans right and thereby minimise any tax implications.

We have produced a simple two page summary that highlights many of the areas where loans from companies are created and how to set these up in the most effective manner. If you would like a free copy of this guide then please email me at [email protected] and I will be more than happy to send this to you.