Can I borrow money from my limited company?

Are you a director wondering if you can borrow money from your limited company? In this video, we explain everything you need to know about directors’ loans, including why you would use them, how to record money that you borrow from or lend to your company, and the potential tax implications of doing so.
Chapters:
0:00 Intro
0:53 What exactly is a director’s loan?
4:26 The tax implications of directors’ loans - where you borrow money from the company
5:12 What happens if you repay the loan within 9 months of the end of the accounting period
7:27 What transpires when you do not repay the loan within 9 months of the end of the accounting period
8:12 Be aware of what is known as ‘bed and breakfasting’
10:45 Tax on directors’ loans - when you lend money to your company
12:04 Does a director’s loan require shareholder approval?
13:28 Should I borrow money from my limited company?
Website: www.1stformations.co.uk/
Blog: www.1stformations.co.uk/blog/
Facebook: / 1stformations
Instagram: / 1stformationsofficial
LinkedIn: / 1st-formations
Twitter: / 1stformations
#1stFormations #smallbusiness #smallbusinesses #businessadvice #directorsloan #directorsloanaccount #companytaxretrurn #corporationtax #companyformation

[@doctoryoussuf]

An extremely useful video covering one of the main issues, which directors encounter while running the company.

[@1stformations]

Thanks for your kind words, Mohammad. Do you have a limited company of your own?

[@depsale]

It's something I've been wondering about for a while It was descriptive enough Thank you.

[@1stformations]

Thanks for your kind words, Ibrahim. Are you a company director?

[@DASABRI]

My congrats. A clear, precise and linear exposition. To have such a professional as a business consultant!

[@1stformations]

Thanks Aristodemo. Have you checked out any of our other videos?

[@RicordiArte]

@@1stformations Not yet, but I'll look for.

[@1stformations]

@@RicordiArte Great. What does your company do for a living?

[@1stformations]

Great. Do you have a limited company?

[@MattJoyceUK]

Thanks for sharing!

[@1stformations]

Pleasure Matt. Have you checked out any of our other videos?

[@vraymond2048]

excellent information just in time. thanks

[@1stformations]

Many thanks for your kind words. Have you tried to borrow money from a limited company before?

[@lehcenouddaouch8163]

Very informative

[@1stformations]

Thanks Lehcen. Did you form your company with 1st Formations?

[@smartutillities4841]

Very useful information. Thanks a lot

[@simonmessenger3764]

Very informative, thank you

[@1stformations]

Thanks Simon. Are you a limited company director?

[@burhaneddinbekciogullar1918]

A very useful video for companies, thanks

[@1stformations]

Thanks Burhaneddin. Have you checked out any of our other videos?

[@zak3382]

Well explained! Great video.

[@1stformations]

Thanks Zak. Have you checked out any of our other videos?

[@sero0911]

Very useful for me thank you

[@graemedonnelly2039]

Good presentation and onscreen graphics. Overall a very useful video for company dIrectors.

[@1stformations]

Thanks Graeme, we do try! Are you the director of a limited company?

[@farsanafiroz9026]

Excellent presentation

[@1stformations]

Cheers Farsana - have you ever tried to take money out of a limited company?

[@johncarpenter8651]

Great video, thanks

[@sbowie100]

Another great and insightful video presented in an easy to understand way

[@1stformations]

Thanks Stephen, do you own a limited company?

[@sbowie100]

@@1stformations yes, formed 2 years ago with the services of your good selves

[@1stformations]

@@sbowie100 Great! What does your limited company do for a living?

[@ahmedbahaa2036]

Sounds great .. thank you! ❤

[@1stformations]

Thanks Ahmed. Have you looked at any of our other videos?

[@Vfbeatzz]

Amazing video good stuff

[@1stformations]

Thank you. Have you checked out any of our other videos?

[@EVOLVEALTD]

That's a good one, useful information. Thanks a lot

[@1stformations]

Thanks for your kind words. What does EVOLVEA LTD do?

[@EVOLVEALTD]

@@1stformations Reselling currently

[@1stformations]

@@EVOLVEALTD Great! What do you re-sell?

[@lawrenceowusu7744]

Very useful information. Thank you 🎉

[@1stformations]

Thanks Lawrence - do you have a limited company?

[@lawrenceowusu7744]

@@1stformations Yes

[@1stformations]

@@lawrenceowusu7744 Brilliant. What does your company do for a living?

[@debralendrum5160]

Very useful

[@vijayahiremath7089]

Very informative!

[@1stformations]

Many thanks Vijaya. What does your company do for a living?

[@ggordon7794]

Great information

[@1stformations]

Thank you. Do you have a limited company?

[@basimashehadeh3122]

Thanks

[@tommasov.7282]

Great video much appreciated support. As an Italian I always find difficult to retrive this information online.

[@1stformations]

Grazie Tommaso. Have you checked out any of our other videos?

[@iammm3291]

Love this

[@1stformations]

Thanks - have you checked out our other videos?

[@user-ci3hr6db3j]

Amazing video

[@1stformations]

Thanks Yusef. Have you checked out any of our other videos?

[@AHMEDHUSSEIN-yn5us]

valuable information
More of these for quality

[@1stformations]

Thanks Ahmed. Have you checked out our UA-cam channel as we have lots of other videos?

[@ahmedsalah317]

Amazing!

[@1stformations]

Thank you Ahmed. Have you ever attempted to take money out of a limited company?

[@omarghayaat6238]

Insightful

[@1stformations]

Many thanks for your kind words, Omar. What does your company do for a living?

[@omarghayaat6238]

@@1stformations Digital Marketing Training and Consultations

[@1stformations]

@@omarghayaat6238 Great! Do you have a website?

[@yavuzklc6206]

So amazing video

[@1stformations]

Thanks Yavuz. What was your favourite part of the video?

[@yavuzklc6206]

@@1stformations 04:31 amazing

[@1stformations]

@@yavuzklc6206 That's our favourite part too! Have you checked out any of our other videos?

[@yavuzklc6206]

@@1stformations Yes, I've seen most of them

[@yavuzklc6206]

I think the best video ''How to start a company in the UK''

[@samirmusayev3559]

Nice video

[@Alawi29]

Nice

[@1stformations]

Many thanks. Have you seen any of our other videos?

[@user-rk8nh1qt6b]

nice video

[@1stformations]

Many thanks Tolga. Are you the director of a limited company?

[@zghinouimad6737]

amazing

[@1stformations]

Thanks for your kind words. Are you a limited company director?

[@zghinouimad6737]

@@1stformations yes me

[@1stformations]

@@zghinouimad6737 Great. What does your company do?

[@shadymostafa3225]

Great

[@1stformations]

Thanks. Do you have a limited company?

[@johnporcella2375]

If I start up a limited company and put, say, £100,000 INTO the DLA, am I forced to charge it interest or can I charge 0% to avoid declarations?

[@user-ts9vu7qn3j]

From which website I can lend money?

[@SachinKaushalsacvicky]

Hi where can I find all templates for board resolutions and company board minutes to maintain accurate records of my company. Eg ordinary board resolution and board minutes

[@1stformations]

Hi Sachin - you would need to pay a company to provide these type of templates to you. Have you looked online?

[@SachinKaushalsacvicky]

@@1stformations Hi Nick
I have checked online and only one website has some content but not what a U.K. limited companies required during their life cycle.
I checked law depot only website which has some of the forms
Would you recommend all of us please?

[@1stformations]

@@SachinKaushalsacvicky Unfortunately templates of this nature are hard to come by. We would recommend considering paying a company secretarial company to do this work for you. Have you investigated this potential route?

[@elgloryshop]

So I can borrow 10.000£ for my limited company and if I pay withing 9 months there is no interest to pay.
Is there any requirements or obligation or something to have before being eligible to borrow a certain amount or to benefit from this possibility?

[@MINIDROPPYeTINY]

SVP veuillez donnez l'acces au traducteur de langues. Merci

[@umutbulut3083]

Hi. I wanna own a company through your company, but I am not from UK . I started my company establishment process, but residence information and identitiy photo were requested. I am worried that I will have problems in my country in this point. If I send these documents will the company have a relationship with these doc.

[@1stformations]

Which country are you from?
We are required to verify the ID and address of all customers and majority shareholders of companies formed by us. We will need to hold these on file once they have been provided to us.
I would recommend contacting our Compliance Team on live chat at www.1stformations.co.uk, who will by happy to help you.

[@kristijan2849]

Is there a requirement to borrow money from my limited company if I am not a UK citizen but I have a company in the UK and what are my obligations or costs of all that if I borrow 5000 pounds/euro to pay back within a year or two???

[@1stformations]

Hi Kristijan - the same rules outlined in our video apply whether you are a UK citizen or not. Have you spoken to an accountant regarding this?

[@SachinKaushalsacvicky]

Hi
I have not explored Company secretarial website. I have now to browse some companies related to this. I was wandering as one man director company may not be able to invest someone managing secretarial duties. I am after company who can help remotely as per company requirements

[@1stformations]

Thank you for your kind comment. Have you checked out our Full Company Secretary Service, which may be of assistance to you? www.1stformations.co.uk/full-company-secretary/

[@MuhammadBilal-rn5wh]

If i borrow a 10000£ loan
For 9 months
And i pay it within the 9 months
Have i to pay any intetest...?

[@1stformations]

Do you mean borrowing from your limited company?

[@elgloryshop]

​@@1stformations yes I think he is talking about his limited company

[@1stformations]

@@elgloryshop Thanks Eli.

[@fiiersupport]

FIIER LTD

[@1stformations]

Thanks for your comment - what does FIIER LTD do for a living?

[@youtubeexpert388]

Whats your age? and whats your wife age?

[@1stformations]

That is classified information :)

[@youtubeexpert388]

@@1stformations don't be over smart stay in your limits

[@1stformations]

@@youtubeexpert388 Thank you for that sage advice. What do you do for a living?

[@catprod8962]

Nice

[@1stformations]

Thanks for your kind coment. Do you have a limited company?

[@idefix237]

Nice

[@1stformations]

Thanks - do you have a limited company?

[@idefix237]

@@1stformations turns out i do yea

[@1stformations]

@@idefix237 Great - what does your company do for a living?

[@idefix237]

@@1stformations I'd prefer not to answer in public :) hehe. But it does good stuff :P

[@1stformations]

@@idefix237 OK, no worries!