Paul Mullally

Registered with Property118.com
Saturday 11th October 2014


Latest Comments

Total Number of Property118 Comments: 56

Paul Mullally

17:07 PM, 19th April 2018
About 8 months ago

Ltd Company interest on Directors loan?

Reply to the comment left by Peter Gulline at 19/04/2018 - 17:02
oh yes, happy times :-)... Read More

Paul Mullally

17:01 PM, 19th April 2018
About 8 months ago

Paul Mullally

16:42 PM, 19th April 2018
About 8 months ago

Ltd Company interest on Directors loan?

Peter,
With different class of shares, you can vote different dividend amounts or not at all to one specific share class. If you have children over 18, you could also look to create "growth shares" to move wealth "down the chain" from an IHT perspective. This is the beauty of having a company in that you control when and how you take the money.

Your calculation is generally correct although the higher tax earnings bracket is £46,350 and CT is 19% (possibly 18% by 2020). Avoid going over the £100k bracket at all costs, or blow through it by so much, you won't care!

As I said earlier you really need to crunch the numbers. Create yourself a decent spreadsheet to estimate/record both of your annual income streams and make the best of your tax brackets in every year. You'll then be able to play with the figures to assess the impact of each option.

The better you get at knowing your own circumstances and taxation, the better off you'll be. You could pay an accountant to do the same, but there's no real incentive for them!... Read More

Paul Mullally

10:43 AM, 18th April 2018
About 8 months ago

Ltd Company interest on Directors loan?

Reply to the comment left by Tim Rogers at 18/04/2018 - 09:49
Tim,
I'm not sure what you getting at, but if you've given/loaned money to the company but not charged any interest, then you can pay it back whenever you want and at whatever rate you want or have I missed something a little more subtle? I'm always open to new ideas :-)... Read More

Paul Mullally

21:26 PM, 17th April 2018
About 8 months ago

Ltd Company interest on Directors loan?

Sorry to tell you Desi, but that's wrong. If you're charging interest to your limited company, you are earning additional income personally (regardless of what interest rate you charge) and this must be reported on both the CT61 form quarterly and recorded on your annual self assessment.... Read More