Many director/shareholders borrow money from their Companies but, as long as they pay it back within 9 months of the following accounting year end date, there are no great tax implications.

If it is not paid back by that deadline, a law called s.455, says the Company must pay 32.5% of the outstanding loan to HMRC – who then hold this money until the loan has been repaid to the Company.

What you cannot do is pay it back by the deadline and then re-borrow it soon afterwards – unless it is a loan under £15,000, which can be re-borrowed if more than 30 days later. If you re-borrow an amount over £15,000 – even after more than 30 days later – HMRC can, and will, treat such loans as NOT repaid if they believe it was always intended that the loan would be re-borrowed, once repaid.

So, in practice you can borrow money from your Company – but be aware of the rules.