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Tax Breaks for Directors - Part 1 Directors only - 4. Directors’ bonuses - 4.6. Not drawing the cash
4.6. Not drawing the cashWhile your company might be making profits, cash may be thin on the ground. Hard pressed companies may balk at the prospect of parting with cash to pay a bonus, even though performance of the business or a particular director may warrant it, preferring to keep what cash they have “just in case”. However, this can be worked around to some degree. If your business needs the cash, you could leave your bonus (after tax and NI has been paid on it) in your company. You can agree a timetable...Click here -
Tax Breaks for Directors - Part 2 Director shareholders - 15. Director’s loan account - 15.2. Charging expenses - 15.2.1. Practical points
15.2.1. Practical pointsYou must have adequate records to show the nature of an expense otherwise where it is charged to your DLA you may have to pay tax on it. For example, if you’ve paid out to entertain a business customer you should keep receipts, bar bills, credit card vouchers etc. This may seem like a chore, but it’s a necessary one.The documentation kept in support of your claim forms part of the company’s books in the same way any other expenses invoices do. Unlike putting an entry on your...Click here -
Tax Breaks for Directors - Part 2 Director shareholders - 22. Year-end planning for directors - 22.3. Key dates for your company - 22.3.5. Directors’ loan accounts
22.3.5. Directors’ loan accountsThe director shareholders could leave what they are entitled to within the company, so that the company credits the relevant amount to their director’s loan account. It’s then available for them to draw at any time they want. However, you will be taxed as if the company had given you a cheque on the date it’s put into your director’s loan account.Click here -
Slash Your Tax for Small Businesses - 5. Taking the profits out of the company tax efficiently - 5.8. Loans - 5.8.1. Rather than paying tax taking profits out, can’t I just borrow the money from the company?
5.8.1. Rather than paying tax taking profits out, can’t I just borrow the money from the company?Yes. However, taking loans from the company does have certain tax consequences, so you should be cautious with loans.Click here
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