How to lend husbands limited company money?

eddiedog · 10 August 2017 at 1:33PM

I'm looking for some advise please. My husbands limited company needs some start up capital, which I have and am happy to provide. I don't want to become a shareholder of the company as I don't want to receive dividends just non taxable loan repayments. Any ideas how we should formalise the loan to the limited company that gives me the most protection? I don't for a second think he'll run off with the cash but equally I don't want to be foolish with all my savings.

Any advice will be much appreciated.

antrobus · 10 August 2017 at 1:43PM

eddiedog wrote: »

I'm looking for some advise please. My husbands limited company needs some start up capital, which I have and am happy to provide. I don't want to become a shareholder of the company as I don't want to receive dividends just non taxable loan repayments. Any ideas how we should formalise the loan to the limited company that gives me the most protection? I don't for a second think he'll run off with the cash but equally I don't want to be foolish with all my savings.

Any advice will be much appreciated.

In writing, signed by yourself and the company director aka your husband.

The company might also like to have a board meeting of its sole director and pass a resolution along the lines of,

It was resolved that the company had accepted a loan of £x from Mrs A. Anybody; the loan is interest free and repayble on demand.

Or whatever it is that you want.

bargainbetty · 10 August 2017 at 2:09PM

Do bear in mind that if the the business fails, he will have no personal obligation to repay the money if you need it - the business will be the debtor.

Sorry, I've seen a lot of the threads on here about mixing money and family. Doesn't always end well.

Best of luck.

eddiedog · 10 August 2017 at 2:37PM

Thanks both.

How to lend husbands limited company money?

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