Can I charge interest if I lend money to the company?

Does the company have to deduct tax and pay interest net?

Can the company pay me interest gross?

  • When a director or other individual makes a loan to his company, he may charge it interest.
  • Providing interest is not excessive and is paid within a certain timeframe the company will also obtain Corporation Tax relief on interest paid to the director as a deduction from its profits.
  • Where the loan term lasts for longer than a year the company must deduct tax at basic rate and make payments of interest net of tax. 

See Interest: paid to directors and individuals