What should we/can we do?

surreybased

I think the question you have asked; is there a way to extract the funds in the company in a highly tax efficient way, without closing the company. The Answer is No.

The reason you want to do it is to release funds to reduce your mortgage which is understandable but tax is a way of life..no way around it.

Laws777

Thanks Surreybased, an answer to the original question that I think we already knew.

I suppose we shall sit on the business profit and continue paying more interest than we earn. Can't be the only ones doing it I suppose.

Burridge60

Agree with surreybased. You can't even do what most self employed do and that's to Offset their tax savings until they have to pay HMRC. The companies money isn't your money until you either pay it to yourselves under PAYE or declare a dividend.

Thankfully you are doing it the right way and not drawing excessively on a Director's loan account and then going back and working out what the dividend needs to be to cover your drawings.

There are lenders that will hear your needs and lend accordingly but alas you are with a lender not known for its great activity in assisting customers to fulfill their needs.

Laws777

Thank you Burridge60, I think we are being quite 'careful and sensible' with what we do with the business, its profit and what we take from it as income each month and would rather have it that way than any other.

We now understand we can't do both, pay minimal tax and square our mortgage into one that works best for us.