ZARZA We are Zarza, the prestigious firm behind major projects in information technology.
Listen "Charging Interest And Paying Yourself"
Episode Synopsis
Shaz explains the crucial details around money you take out from a company and how to do it in the right way along with informative content about tax and interest.
He also goes through the best way to loan money to your company and discusses the rate of interest you should be considering
This is a great episode packed with advice and information, listen in and learn more
KEY TAKEAWAYS
If you borrow money from a company you will need to pay interest or file a P11D and pay tax
If you owe the company money 9 months after the year-end you will pay 33.75% tax to HMRC as a Section 455 penalty tax
You can borrow money as a one-off from the company but not repeatedly, which is known as bed and breakfasting
If you are a basic rate taxpayer the first £1,000 of savings income is tax-free. If you are a higher rate taxpayer the first £500 in tax-free
Loaning money to your company can be a higher risk so a higher rate of interest is justified
With a limited company, you only pay tax on the income you draw down as you draw on it. As a sole trader or partnership, you pay tax on all of the profit every single year
In a limited company you control how much you take out and when you take it out and have some control over the tax you pay
BEST MOMENTS
‘You can get to £27,570 without paying a single penny in tax’
‘ The company is a separate legal entity’
‘If you repay the loan you can claim back the money paid to HMRC’
VALUABLE RESOURCES
[email protected]
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of
income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
Facebook
LinkedIn
Instagram
YouTube.
He also goes through the best way to loan money to your company and discusses the rate of interest you should be considering
This is a great episode packed with advice and information, listen in and learn more
KEY TAKEAWAYS
If you borrow money from a company you will need to pay interest or file a P11D and pay tax
If you owe the company money 9 months after the year-end you will pay 33.75% tax to HMRC as a Section 455 penalty tax
You can borrow money as a one-off from the company but not repeatedly, which is known as bed and breakfasting
If you are a basic rate taxpayer the first £1,000 of savings income is tax-free. If you are a higher rate taxpayer the first £500 in tax-free
Loaning money to your company can be a higher risk so a higher rate of interest is justified
With a limited company, you only pay tax on the income you draw down as you draw on it. As a sole trader or partnership, you pay tax on all of the profit every single year
In a limited company you control how much you take out and when you take it out and have some control over the tax you pay
BEST MOMENTS
‘You can get to £27,570 without paying a single penny in tax’
‘ The company is a separate legal entity’
‘If you repay the loan you can claim back the money paid to HMRC’
VALUABLE RESOURCES
[email protected]
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of
income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
YouTube.
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