Ltd Company interest on Directors loan?Make Text Bigger
Just wondering if anyone has any ideas on this as I am not finding much on the web and there seems to be different ideas about CT61 forms.
I am about to ( July 18 ) clear the mortgage across my 6 flats which I have had in a ltd company since 2005. I have thrown every penny of savings at this each year and come July will be sitting on £600k property with no debt and £3000 per month income. The directors loan will be £375k
Do I start charging interest to my ltd company and take the money as interest…at say 5%. If so does the company pay 20% to HMRC and then me again on my tax return? If so that does not sound economical.
Or do I let it run as in the past and not take any interest but start taking dividends. After general running costs I should be left with around £25k to pay tax on.
I am planning to stop working as I also have an income of around £12k from other flats which are not in the ltd company as back in 2005 they would have had too much Corporation Tax to pay.
Any thoughts are welcome – plus I am in Scotland as that now makes a tax difference unfortunately.
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