Director's loan agreement

Hello,

I got tier 1 entreprenure 50k visa 2 years ago with entreprenure team.
We trancefer 51000 from joint account to business account , and make director loan agreement as 25500 loan issue by me and 25500 by my entreprenure partner, is that all right , or 50000 need under 1 person name?

We make director loan agreement on company letterhead , and signed by both director, no accountant sign and also not attested by solicitor, it's all right? Or we need to change anything ,

Please give us advice ,

Thanks in advance ,

Patel

Yes it absolutely fine but as a director have U or other director took wages from your bussinesd

Yes,

We took salery every month

If you took director wages from your business then it will be excluded from the actual 50000 investment
Means you need to put all those wages back to your business director loan like 50000

What if you have you invested money in form of share capital and it shows on your share certificate £200k worth shares? Do directors still need to pay back their salaries?

Thank you.

Director salery is business expanse, and if we 2 directors took 30000 salery every year from profit and also 10000 dividend from profit , still business bank balance will increase because of profit ,
Still we need to reinvest salery amount ?
And bank Belence always more than 50000 so it's alright or we need to spand all of them ,

Please advice ,

Thanks

Patel

I got tier 1 entreprenure 50k visa 2 years ago with entreprenure team.
We trancefer 51000 from joint account to business account , and make director loan agreement as 25500 loan issue by me and 25500 by my entreprenure partner, is that all right , or 50000 need under 1 person name?

As a team, you give 50K to your business. Your names show on the loan agreement as lenders. There is no need for it to be 50/50.

We make director loan agreement on company letterhead , and signed by both director, no accountant sign and also not attested by solicitor, it's all right? Or we need to change anything ,

Loan agreement does not need witnesses.

tarun_shreeji wrote:Director salery is business expanse, and if we 2 directors took 30000 salery every year from profit and also 10000 dividend from profit , still business bank balance will increase because of profit ,
Still we need to reinvest salery amount ?
And bank Belence always more than 50000 so it's alright or we need to spand all of them ,

Director's salary is remuneration and should not come from your investment. Your company accounts should show that the company still owes you 50K.

Thanks Zimba88,

In company's account shows 25500 on one director name and 25500 on other director name is ok?

And if business bank account shows 60000 balance including investment , it's ok ?
We no need to spend all of them , because of profit balance is increase all the time day by day ,

Please advice

Thanks

Patel

tarun_shreeji wrote:In company's account shows 25500 on one director name and 25500 on other director name is ok?

Should be fine

And if business bank account shows 60000 balance including investment , it's ok ?
We no need to spend all of them , because of profit balance is increase all the time day by day ,

By company accounts I mean annual accounts/interim accounts not the bank account. Loan should not be repaid in any form, e.g you should not get any remuneration out of it.

Hi Zimba.. can you kindly explain this abit? if a company has let suppose 25K/45K/40K turnover for 3 years and director takes salary will i still need invest the salary amount back ? and how to show on accounts that company still owe me 50K ? ( i guess if other Creditors shows 50K this shub be enough?)

Thanks in advance

Director's salary is remuneration and should not come from your investment. Your company accounts should show that the company still owes you 50K.[/quote]

FKS21177 wrote:Hi Zimba.. can you kindly explain this abit? if a company has let suppose 25K/45K/40K turnover for 3 years and director takes salary will i still need invest the salary amount back ? and how to show on accounts that company still owe me 50K ? ( i guess if other Creditors shows 50K this shub be enough?)

First of all any money paid as salary to a director from tunr over is fine. You simply cannot invest money and start paying yourself salary out of it.
Your accounts should show that the loan has not be repaid in the creditors section. Your accountant knows this

Thanks Zimba for your response. i will make sure accountants does show.

zimba88 wrote:

FKS21177 wrote:Hi Zimba.. can you kindly explain this abit? if a company has let suppose 25K/45K/40K turnover for 3 years and director takes salary will i still need invest the salary amount back ? and how to show on accounts that company still owe me 50K ? ( i guess if other Creditors shows 50K this shub be enough?)

First of all any money paid as salary to a director from tunr over is fine. You simply cannot invest money and start paying yourself salary out of it.
Your accounts should show that the loan has not be repaid in the creditors section. Your accountant knows this

Hi ,

I'm also in same situation but we have transferred from individual personal accounts. So my question is did you made a single Directors Loan Agreement or 2 SET of Directors Loan Agreement mentioning amount transferred by each team member ?

Also if you have done in 1 single Agreement can you please share the template as I'm really confused about the terms and conditions when preparing a Single Loan Agreement for Team.

Seniors please suggest. My extension is due this weekkkk

tarun_shreeji wrote:Hello,

I got tier 1 entreprenure 50k visa 2 years ago with entreprenure team.
We trancefer 51000 from joint account to business account , and make director loan agreement as 25500 loan issue by me and 25500 by my entreprenure partner, is that all right , or 50000 need under 1 person name?

We make director loan agreement on company letterhead , and signed by both director, no accountant sign and also not attested by solicitor, it's all right? Or we need to change anything ,

Please give us advice ,

Thanks in advance ,

Patel