How to pay back a directors investment payment?

[ClaireLangford]

Myself and 2 coworkers opened our own hairdresser and beauty salon 2 years ago, as directors of the company we all put money in to the business account as an investment.
Does anyone know the process or the legalities of how to pay back an individual investment, when it is acceptable to do so what ways is it acceptable to pay the money back.

Thanks
Claire

 

[S2K]

Did you invest those money as share capital or did you loan them to the company? If you did as share capital, you can only "take them out" as dividends if available, although you can reduce the share capital in special circumstances. If you loaned them to the company, the company can repay the loan. No tax implications on your end unless you charge interest, in which case the interest is taxable under the income tax rules.

 

[MyAccountantOnline]

Myself and 2 coworkers opened our own hairdresser and beauty salon 2 years ago, as directors of the company we all put money in to the business account as an investment.
Does anyone know the process or the legalities of how to pay back an individual investment, when it is acceptable to do so what ways is it acceptable to pay the money back.

Thanks
Claire

If it was a loan it can be repaid at anytime it doesn't effect your own or the company tax at all.

You can repay loans in anyway; a bank transfer is good as it provides a good record.

Also make sure you record the repayments in the company accounting records.