Hi,
This year I have a start-up Ltd company and I am considering the following scenario:
The objective is to take advantage of the lower rate of income tax this year and use the loan as cashflow. Is this permissible? I will refer to my accountant also.
This year I have a start-up Ltd company and I am considering the following scenario:
- My personal earnings have been below the high rate tax rate threshold so far this year
- I have another customer I'm working for starting next week. Due to payment terms some of this years earned work will not be paid until 2015
- Would it be permissible to loan the business money this year to pay those wages and to repay it next year when the customer pays their bills?
The objective is to take advantage of the lower rate of income tax this year and use the loan as cashflow. Is this permissible? I will refer to my accountant also.