Repayment of Directors Loans

If a director borrows money from their LTD Company over an amount of £5,000 tax becomes payable at 25% on the whole amount if, the loan is not repaid within 9 months of the LTD Company financial year end. This tax can be reclaimed once the loan has been repaid for a period of 6 years.

However HMRC have announced that loans repaid after the financial year end 31 March 2011, that the 6 year limit has been reduced to 4 years