Hi Brendan,
The situation is that when I did get a salary the loan was repaid. The problem were the months were no salary was paid and the loans had interest accruing as I could not make the repayment. Okay, so my situation is that I loaned this money to this business of which I was an employee.
Are you aware of documentation required to claim relief on such a loan.
It is also the situation that I have repaid the loan fully now....does this effect the claim.
Nano.
i Nano
The more important question is why were you paying yourself a taxable salary when you could have been repaying the loans?
If you paid yourself salary this year, you could probably repay the net and claim back the tax and prsi you paid.
interest on borrowings to buy shares or to lend to a business is allowed for tax purposes. I am not aware of a restriction that the company must still be trading. If the loan is a permanent loan i.e. the company can't repay it, you should get relief on your borrowings while they are still outstanding.
brendan