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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Yes it would be perfectly in order. Any interest paid on the loan would be liable to Income Tax (IT) in your hands.
The Directors Loan account would rank pari passu with all other creditors unless it were created as preference creditor eg secured on the company's assets and even then if the company goes down the tubes there may still be no funds available to meet the liability and there will be the costs of setting up such a loan to be taken into account also.
I do hope that you have found my reply of some assistance.
Providing that no third party including HMRC and the Receiver lost out as a result of you being repaid direct then I think that this would be feasible. You could, of course, get round this by making the loan directly, but this is where we came in!
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