Personal tax - Profit extraction

Director's loan agreementA director shareholder doesn't have to sign a loan agreement when they borrow money from their company. The terms of borrowing can be agreed orally or just implied. However, in certain situations a director is required by compa... Read more

Director's loan account write-off letterAn overdrawn director's loan account can be cleared by the company if the directors or shareholders agree to write the loan off. However, it must get the paperwork right.Reporting requirementsWhere a director or ... Read more

Interest payable on loan account minuteWhere a director's loan account is in credit, the board can agree to pay interest on the balance. This should be recorded in a board minute.When to use this board minuteIt's advisable to set out the terms and cond... Read more

Director's or employee's loan account recordA taxable benefit in kind may arise where an employee or director borrows or uses their company's money. You must keep a record of money owed by the employee or director to enable you to calculate the taxable ... Read more

Licence agreementWhere your company makes a payment to you in return for being allowed to use your home or other property for its business, you should draw up an agreement to formalise the arrangement. A licence agreement, rather than a lease, provid... Read more

Dividend waiverA dividend waiver is a document produced by a sharelder to show that they have given up (waived) their right to one or more dividends that they would otherwise be entitled to. A waiver can be used in income tax and inheritance tax plan... Read more

Licence agreement (garage)Where you use your garage for storage on behalf of your company, it can pay you rent. The arrangement should be formalised by a licence agreement which gives the company non-exclusive rights over the property.Company storage... Read more