Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Loan to a limited company

  • 24-10-2017 6:57pm
    #1
    Sammy296296
    Registered Users, Registered Users 2 Posts: 16 ✭


    Hi,

    I'm a (non-director) shareholder of a limited company. I'm full-time employed with the company.

    Can i loan the company money as a non-director?

    i.e could i borrow €10,000 from my bank at 8.5% AER (12 month term) and lend €10,000 to the company at 12.5%?

    What tax would i pay on monthly repayments from the company?

    thanks for any help.


Comments

  • #2
    srsly78
    Registered Users, Registered Users 2 Posts: 7,157 ✭✭✭srsly78


    You pay the same tax on all your income. Note that your borrowing interest would not count against income tho.


  • #3
    Paddy001
    Registered Users, Registered Users 2 Posts: 724 ✭✭✭Paddy001


    It would make more sense for the company to borrow the funds and have you give a PG over the debt. Company will get a deduction for the interest in full (which may be at a better rate). You also need to consider whether s. 437 of the TCA would impact you.


Advertisement