Expert accountancy and bookkeeping services for small Limited Companies

It is common for limited company owners to lend money to their company. You may have used personal savings to fund start-up costs, purchase equipment, support cash flow or provide the deposit for an investment. The company can repay the money you originally lent it without that repayment being treated as income. But what if you also want the company to pay you interest? That can be possible, and the interest can be tax deductible for the company. However, there are important

Many limited company directors take money in and out of their company during the year. This may include salary, dividends, business expenses, personal payments, repayments, or money borrowed from the company. If these amounts are not recorded correctly, they can create problems in the Director’s Loan Account. For small owner-managed companies, this is an area that needs careful attention. What is a Director’s Loan Account? A Director’s Loan Account records money moving betwee

Dividends can be a tax-efficient way to take money from a limited company, but they are not as simple as many business owners think. A dividend must be legal, properly approved, correctly recorded and reported in the right tax year. If it is not handled correctly, it can create problems with HMRC, Companies House records, director’s loan accounts and personal tax returns. In this guide, we explain: what a dividend is; the difference between interim and final dividends; who ca

When you’re the director of a business, it’s likely that there will be occasions where you borrow money directly from your company, or...