Recovering start up funds from LTD company

[Mark1987]

Hi guys. I’m really sorry if this has been asked before but I can’t actually find any clear info on it.

I am looking to start a Ltd company to buy properties. I will be using my own money to put in as the desposit and the houses will then be owned by the company. Over the next couple of years I expect to put in around 60k of my personal money.

My question is, with this money, when the day comes when I would like to recover it from the company (all being well), can I take it out without paying tax on it as it was a loan from myself to the company?

If the answer to the above is yes can I charge an interest on it (5% per year for example) and is there any time limit to when these funds must be recovered? Finally would any paperwork be required to make sure this is all kosher?

Thank you so much for any help you can provide on this matter.

 

[MBE2017]

I could say something since I invest in property, but the best and only answer you consider is this……

Take professional advice, how to buy, sell, finance etc will come down to many factors, BUT everyone’s situation is slightly different. Talk to a good accountant, one who invests in property themselves preferably.

Without knowing your aims, targets and strategy any well intentioned advice could be completely wrong for you, and could cost you a lot more than professional advice.

 

[WaveJumper]

Echo above get proper professional advice ........... before you go any further

 

[ctrlbrk]

@Mark1987

Director's loans

Your and your company's responsibilities - repaying director's loans, interest, tax on loans, reporting to HM Revenue and Customs.

www.gov.uk

 

[Mark1987]

Thank you for the responses guys. I’ll definitely look into professional advice but it sounds like at least the loan can be repaid tax free which is good to know

 

[AndreasC]

The loan can be repaid tax free as it is a loan.

You can charge interest but then would have to complete more paperwork each year and this would be taxable on you (no allowances available as from your own Ltd).

As MBE said without knowing your situation, what you are trying to achieve and why you won't know if it's the right set up.

I'm an accountant so if you want to get in a touch for a free chat feel free

 

[m4hmo]

The deposit you put down from personal funds goes down as a directors loan to the company.

 

[ethical PR]

Hi guys. I’m really sorry if this has been asked before but I can’t actually find any clear info on it.

I am looking to start a Ltd company to buy properties. I will be using my own money to put in as the desposit and the houses will then be owned by the company. Over the next couple of years I expect to put in around 60k of my personal money.

My question is, with this money, when the day comes when I would like to recover it from the company (all being well), can I take it out without paying tax on it as it was a loan from myself to the company?

If the answer to the above is yes can I charge an interest on it (5% per year for example) and is there any time limit to when these funds must be recovered? Finally would any paperwork be required to make sure this is all kosher?

Thank you so much for any help you can provide on this matter.

If you are investing that amount take professional advice from a tax accountant.