Can I borrow money from my limited company?

Рет қаралды 4,708

Жыл бұрын

Are you a director wondering if you can borrow money from your limited company? In this video, we explain everything you need to know about directors’ loans, including why you would use them, how to record money that you borrow from or lend to your company, and the potential tax implications of doing so.
Chapters:
0:00 Intro
0:53 What exactly is a director’s loan?
4:26 The tax implications of directors’ loans - where you borrow money from the company
5:12 What happens if you repay the loan within 9 months of the end of the accounting period
7:27 What transpires when you do not repay the loan within 9 months of the end of the accounting period
8:12 Be aware of what is known as ‘bed and breakfasting’
10:45 Tax on directors’ loans - when you lend money to your company
12:04 Does a director’s loan require shareholder approval?
13:28 Should I borrow money from my limited company?
Website: www.1stformations.co.uk/
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#1stFormations #smallbusiness #smallbusinesses #businessadvice #directorsloan #directorsloanaccount #companytaxretrurn #corporationtax #companyformation

Пікірлер: 118

@doctoryoussuf Жыл бұрын

An extremely useful video covering one of the main issues, which directors encounter while running the company.

@1stformations Жыл бұрын

Thanks for your kind words, Mohammad. Do you have a limited company of your own?

@depsale Жыл бұрын

It's something I've been wondering about for a while It was descriptive enough Thank you.

@1stformations Жыл бұрын

Thanks for your kind words, Ibrahim. Are you a company director?

@DASABRI Жыл бұрын

My congrats. A clear, precise and linear exposition. To have such a professional as a business consultant!

@1stformations Жыл бұрын

Thanks Aristodemo. Have you checked out any of our other videos?

@RicordiArte Жыл бұрын

@@1stformations Not yet, but I'll look for.

@1stformations Жыл бұрын

@@RicordiArte Great. What does your company do for a living?

@1stformations Жыл бұрын

Great. Do you have a limited company?

@jamesoylk Ай бұрын

If you pay back the loan within 9 months at the prevailing interest rate, you don't need to pay any tax or Ni if the amount is over 15k.

@1stformations Ай бұрын

Thank you for your comment, James. Are you an expert in this area?

@vraymond2048 Жыл бұрын

excellent information just in time. thanks

@1stformations Жыл бұрын

Many thanks for your kind words. Have you tried to borrow money from a limited company before?

@smartutillities4841 Жыл бұрын

Very useful information. Thanks a lot

@burhaneddinbekciogullar1918 Жыл бұрын

A very useful video for companies, thanks

@1stformations Жыл бұрын

Thanks Burhaneddin. Have you checked out any of our other videos?

@simonmessenger3764 Жыл бұрын

Very informative, thank you

@1stformations Жыл бұрын

Thanks Simon. Are you a limited company director?

@johncarpenter8651 Жыл бұрын

Great video, thanks

@graemedonnelly2039 Жыл бұрын

Good presentation and onscreen graphics. Overall a very useful video for company dIrectors.

@1stformations Жыл бұрын

Thanks Graeme, we do try! Are you the director of a limited company?

@zak3382 Жыл бұрын

Well explained! Great video.

@1stformations Жыл бұрын

Thanks Zak. Have you checked out any of our other videos?

@sero0911 Ай бұрын

Very useful for me thank you

@MattJoyceUK Жыл бұрын

Thanks for sharing!

@1stformations Жыл бұрын

Pleasure Matt. Have you checked out any of our other videos?

@ahmedbahaa2036 Жыл бұрын

Sounds great .. thank you! ❤

@1stformations Жыл бұрын

Thanks Ahmed. Have you looked at any of our other videos?

@iammm3291 Жыл бұрын

Love this

@1stformations Жыл бұрын

Thanks - have you checked out our other videos?

@vijayahiremath7089 Жыл бұрын

Very informative!

@1stformations Жыл бұрын

Many thanks Vijaya. What does your company do for a living?

@debralendrum5160 Жыл бұрын

Very useful

@lehcenouddaouch8163 Жыл бұрын

Very informative

@1stformations Жыл бұрын

Thanks Lehcen. Did you form your company with 1st Formations?

@EVOLVEALTD Жыл бұрын

That's a good one, useful information. Thanks a lot

@1stformations Жыл бұрын

Thanks for your kind words. What does EVOLVEA LTD do?

@EVOLVEALTD Жыл бұрын

@@1stformations Reselling currently

@1stformations Жыл бұрын

@@EVOLVEALTD Great! What do you re-sell?

@basimashehadeh3122 2 ай бұрын

Thanks

@farsanafiroz9026 Жыл бұрын

Excellent presentation

@1stformations Жыл бұрын

Cheers Farsana - have you ever tried to take money out of a limited company?

@sbowie100 Жыл бұрын

Another great and insightful video presented in an easy to understand way

@1stformations Жыл бұрын

Thanks Stephen, do you own a limited company?

@sbowie100 Жыл бұрын

@@1stformations yes, formed 2 years ago with the services of your good selves

@1stformations Жыл бұрын

@@sbowie100 Great! What does your limited company do for a living?

@Vfbeatzz Жыл бұрын

Amazing video good stuff

@1stformations Жыл бұрын

Thank you. Have you checked out any of our other videos?

@ggordon7794 Жыл бұрын

Great information

@1stformations Жыл бұрын

Thank you. Do you have a limited company?

@ahmedsalah317 Жыл бұрын

Amazing!

@1stformations Жыл бұрын

Thank you Ahmed. Have you ever attempted to take money out of a limited company?

@lawrenceowusu7744 Жыл бұрын

Very useful information. Thank you 🎉

@1stformations Жыл бұрын

Thanks Lawrence - do you have a limited company?

@lawrenceowusu7744 Жыл бұрын

@@1stformations Yes

@1stformations Жыл бұрын

@@lawrenceowusu7744 Brilliant. What does your company do for a living?

@AHMEDHUSSEIN-yn5us Жыл бұрын

valuable information More of these for quality

@1stformations Жыл бұрын

Thanks Ahmed. Have you checked out our KZfaq channel as we have lots of other videos?

@tommasov.7282 Жыл бұрын

Great video much appreciated support. As an Italian I always find difficult to retrive this information online.

@1stformations Жыл бұрын

Grazie Tommaso. Have you checked out any of our other videos?

@user-ci3hr6db3j Жыл бұрын

Amazing video

@1stformations Жыл бұрын

Thanks Yusef. Have you checked out any of our other videos?

@johnporcella2375 Ай бұрын

If I start up a limited company and put, say, £100,000 INTO the DLA, am I forced to charge it interest or can I charge 0% to avoid declarations?

@user-ts9vu7qn3j Жыл бұрын

From which website I can lend money?

@elgloryshop Жыл бұрын

So I can borrow 10.000£ for my limited company and if I pay withing 9 months there is no interest to pay. Is there any requirements or obligation or something to have before being eligible to borrow a certain amount or to benefit from this possibility?

@omarghayaat6238 Жыл бұрын

Insightful

@1stformations Жыл бұрын

Many thanks for your kind words, Omar. What does your company do for a living?

@omarghayaat6238 Жыл бұрын

@@1stformations Digital Marketing Training and Consultations

@1stformations Жыл бұрын

@@omarghayaat6238 Great! Do you have a website?

@samirmusayev3559 8 ай бұрын

Nice video

@Alawi29 Жыл бұрын

Nice

@1stformations Жыл бұрын

Many thanks. Have you seen any of our other videos?

@user-rk8nh1qt6b Жыл бұрын

nice video

@1stformations Жыл бұрын

Many thanks Tolga. Are you the director of a limited company?

@shadymostafa3225 Жыл бұрын

Great

@1stformations Жыл бұрын

Thanks. Do you have a limited company?

@kristijan2849 Жыл бұрын

Is there a requirement to borrow money from my limited company if I am not a UK citizen but I have a company in the UK and what are my obligations or costs of all that if I borrow 5000 pounds/euro to pay back within a year or two???

@1stformations Жыл бұрын

Hi Kristijan - the same rules outlined in our video apply whether you are a UK citizen or not. Have you spoken to an accountant regarding this?

@zghinouimad6737 Жыл бұрын

amazing

@1stformations Жыл бұрын

Thanks for your kind words. Are you a limited company director?

@zghinouimad6737 Жыл бұрын

@@1stformations yes me

@1stformations Жыл бұрын

@@zghinouimad6737 Great. What does your company do?

@umutbulut3083 Жыл бұрын

Hi. I wanna own a company through your company, but I am not from UK . I started my company establishment process, but residence information and identitiy photo were requested. I am worried that I will have problems in my country in this point. If I send these documents will the company have a relationship with these doc.

@1stformations Жыл бұрын

Which country are you from? We are required to verify the ID and address of all customers and majority shareholders of companies formed by us. We will need to hold these on file once they have been provided to us. I would recommend contacting our Compliance Team on live chat at www.1stformations.co.uk, who will by happy to help you.

@SachinKaushalsacvicky 7 ай бұрын

Hi where can I find all templates for board resolutions and company board minutes to maintain accurate records of my company. Eg ordinary board resolution and board minutes

@1stformations 7 ай бұрын

Hi Sachin - you would need to pay a company to provide these type of templates to you. Have you looked online?

@SachinKaushalsacvicky 7 ай бұрын

@@1stformations Hi Nick I have checked online and only one website has some content but not what a U.K. limited companies required during their life cycle. I checked law depot only website which has some of the forms Would you recommend all of us please?

@1stformations 7 ай бұрын

@@SachinKaushalsacvicky Unfortunately templates of this nature are hard to come by. We would recommend considering paying a company secretarial company to do this work for you. Have you investigated this potential route?

@yavuzklc6206 Жыл бұрын

So amazing video

@1stformations Жыл бұрын

Thanks Yavuz. What was your favourite part of the video?

@yavuzklc6206 Жыл бұрын

@@1stformations 04:31 amazing

@1stformations Жыл бұрын

@@yavuzklc6206 That's our favourite part too! Have you checked out any of our other videos?

@yavuzklc6206 Жыл бұрын

@@1stformations Yes, I've seen most of them

@yavuzklc6206 Жыл бұрын

I think the best video ''How to start a company in the UK''

@SachinKaushalsacvicky 7 ай бұрын

Hi I have not explored Company secretarial website. I have now to browse some companies related to this. I was wandering as one man director company may not be able to invest someone managing secretarial duties. I am after company who can help remotely as per company requirements

@1stformations 7 ай бұрын

Thank you for your kind comment. Have you checked out our Full Company Secretary Service, which may be of assistance to you? www.1stformations.co.uk/full-company-secretary/