Tax saving for company loans

Tax saving for company loans, accountancy advice, UK tax advice, free tax advice, free company advice, changing from sole trader to limited company, how do I change from sole trader to limited company, limited company advice, forming a limited company, changing from sole trader, sole trader advice, Omni Chartered Accountants, Chartered Accountant Wolverhampton, Tax Advice Wolverhampton, Payroll Services Wolverhampton, CIS Accountant Wolverhampton, Accountant Wolverhampton The personal tax cost of borrowing from your company is currently quite low.

Taxable benefit

If you borrow from your company, you can be taxed on a benefit in kind (BIK) basis; however, relatively small loans are exempt.
Only when the balance owed exceeds £10,000 in the tax year does the charge apply. In the tax year in which you intend to repay the loan is left a small balance which is repaid after the tax year ends.
Because of the way in which HMRC’s standard calculation works, this reduces the taxable benefit. While HMRC can opt to use a different method of calculation, it’s very unlikely that they will.

Tax saving for company loans

For any tax or accounting advice, call Omni Chartered Accountants on 01902 837 408 or click here for a free of charge call back from our website!

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