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bigduckontax
bigduckontax, Accountant
Category: Tax
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I borrowed 50k from my company for six months within the

Resolved Question:

I borrowed 50k from my company for six months within the same accounting period - and charged myself 3% interest on the loan - do i have any tax liability
Submitted: 2 months ago.
Category: Tax
Expert:  bigduckontax replied 2 months ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

In my opinion no. You have paid a commercial rate in interest on the short term loan so there is no benefit in kind. The interest paid by you will be taxed in the company's annual tax return in the normal manner.

I do hope that I have been able to set your mind at rest on this matter.

Customer: replied 2 months ago.
thanks that confirmed what i thought
If i took the loan out intending to repay it in a years time and the interest was therefore charged on the anniversary of the loan - is that still acceptable
Expert:  bigduckontax replied 2 months ago.

It appears to be the manner in which the loan provider operates, but the principle is the same and is acceptable as before.

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Expert:  bigduckontax replied 2 months ago.

Thank you for your support.