I had 50k in my account which came into business account and then went back into personal account. 2 employees for me working part time for now. I want to put 10-15k back into business account and start paying them every month which I was doing initially via my earnings from the business already.
Since they are part time no tax to pay- happy days! But my accountant said I'll have to pay tax on 10 or 15k. Because personal money will be converted into director loan which is subject to 25% tax. When I checked HMRC website it does mention about taxes. To me I do not see any other way round to avoid taxes if I have to put money back in business account and invest it. Any idea if I have been advised correctly by my accountant coz am sure many of us are/will be doing director loan part during the course of time.
Please feel free to comment and enlighten me with your valuable comments
Regards,
