repaying directors loan and taxation

E

erin67

Guest
We have a ltd co and have put in circa £60k from savings. We are getting close to having this sort of money in our account and I wanted to look at our options. Can we take this money back out of the company without paying tax? Should we think of investing this in our pensions?
Any help would be great.
 
First, you should make sure to pay yourselves salaries which use up the maximum 20% tax bands.

Next, the company can repay the loan and there will be no taxation implications for you or for the company.

After that you should pay yourself more salary or pay into a pension scheme as you choose.

As proprietary directors, there isn't an annual limit on what you can contribute to a pension, so it's not like an employee who may be limited to 20% of their earnings each year. If they don't make a contribution this year, they lose it.

Brendan
 
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