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taxadvisor.uk, Chartered Certified Accountant
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If i put money into a company (directors loan) which I am

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If i put money into a company (directors loan) which I am the sole director of, and it cannot pay me back at the end of the year, what happens?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

When you put money into your company it is credited to your director's loan account within the balance sheet and remains a creditor in company's accounts until such time the company is in a position to repay the money to you.

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 6 days ago.
If i use a directors loan to inject say 27k, subcontract myself for 9k per month (payment for work, not loan repayment) and engage is no other business until the end of the tax year, could I claim a loss for my self employment because the company owes me 27k?

Thank you for your reply.

As a director of your own company, you can't be self employed and raise invoices to the company for work done on behalf of the company. You are an employee of the company.

Monies owed by the company is not a loss for income tax purposes.

I hope this is helpful and answers your question.

Customer: replied 6 days ago.
If I fully own two companies, can one company subcontract the other for work?

Thank you for your reply.

As the companies are separate legal entities, one can outsource work to another.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

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I thank you for accepting my answer.

Best wishes.

Customer: replied 6 days ago.
If I own two companies, can one company make a directors loan to the other, and will this reduce the income for the loaning company for tax purposes?

Thank you for your reply.

Loans are balance sheet items and don't affect income for tax purposes.

Many thanks.

Customer: replied 6 days ago.
Does the interest on loans affect income for tax purposes?

Interest is profit & loss item and affects income for tax purposes.

Many thanks

Customer: replied 6 days ago.
Is there a tax efficient way to balance the loss of one company against the profit of another (without creating another company such as a holding type company)?

You have asked questions not associated with the original question.

You need to put fresh question per Just Answer protocol.

Many thanks