Loan to company from wife

emma1801
emma1801 Registered, AAT Licensed Accountant Posts: 56 Regular contributor ⭐ ? ⭐
I have a company who the Directors wife has loaned money to the company for start up help. Should the company pay her interest upon return of the loan.

Please help.

Em

Comments

  • jamesm96
    jamesm96 Registered Posts: 523
    Only if it was agreed that she would at the outset. Not very common though; the point is to help the company, so charging interest would reduce the helpfulness. No tax reason to do it either - it'd save tax in the company but incur tax on the wife.

    Cheers,

    Mike.
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