5 Tax Free Ways to Pay Yourself Out of a Limited Company in 2024 💼💰"

[@artiomoable]

What if director funds a company during startup and taking loan payback intetest free? So the loan can be repaid without any tax paid. Is that correct?

[@UK-Property-Tax-Accountants]

You can take money back to reduce the loan without charging any interest 👍

[@artiomoable]

Thanks. Can I log any expenses spent as a loan before opening a company? Money was paid for the business purpose just couple weeks before the company formed.

[@UK-Property-Tax-Accountants]

@artiomoable you can carry 6 month expenses prior to incorporation 👍

[@artiomoable]

@Simon-Misiewicz-US-UK-Taxes great. I have one more question. After withdrawing all net rent income as DL payback, will the company need to pay a corporation tax ? or a loan payback is considered as expenses for the company? So it's offsets from the profit

[@UK-Property-Tax-Accountants]

@artiomoable putting money into a company as a loan or taking the money back out again does not affect profitability nor amount of tax that the company pays

[@matthewsmith7820]

You didn't mention interest at the starting rate if income is less than £17,570. Might be useful on a directors loan account.

[@UK-Property-Tax-Accountants]

I did think about including it but I felt it could get confusing and take longer than what I wanted the video to be. 🧐🤨

[@smile3884]

Amazing talk coffee is on me

[@UK-Property-Tax-Accountants]

I am delighted it was useful 🙏

[@Astral100]

What is stopping me from loaning £1000 to my company for a day, and then charge £1000 interest for that day to get that £1000 tax free allowance on the loan?

[@UK-Property-Tax-Accountants]

HMTC will see that as abusive it is an as normal rate of interest

[@Astral100]

@@UK-Property-Tax-Accountants Interesting. So no rule or law as such. Theoretically speaking HMRC would have to analyse my accounts to see that first, right? I imagine my company would have to go through audit for that to happen, which is a pretty low chance to happen to a small company I imagine. Not that I am going to do it, but I imagine the chance of being caught on this seems pretty low to me.

[@thepropertyflipper]

Something people often forget is if you are employed elsewhere and run a ltd company, you get hit double taxation on taking money out as its CT and DT. It needs very careful planning. The tax system doesn't incentives being employed and running a side business for additional income.

[@UK-Property-Tax-Accountants]

I agree. When ever, someone tries to use a limited company to take all the money out, it’s always results in additional tax being paid. Excessive tax compare to having the income in their own name 🙏