Interest payable on loan account minute

Where 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 minute

It’s advisable to set out the terms and conditions of how much interest will be paid and when, and record this in a board minute - our Interest Payable on Loan Account Minute provides suitable wording. This proves that there is an obligation on the company to pay this interest.

The company is entitled to claim a tax deduction for the interest it pays on money it owes a director.