Hi,
I have been paid in previous years via a small wage and drawings on my directors loan account which is then topped up by dividends at the end of each financial year from profits.
My question is this: The business is folding, and I am not interested in topping up the loan account ongoing as it will be closed. Do the drawings from the loan account just mean I have repaid myself money already belonging to me, or is it taxable? Does it count as income, or just me being repaid my own money?
Thanks for any assistance...
I have been paid in previous years via a small wage and drawings on my directors loan account which is then topped up by dividends at the end of each financial year from profits.
My question is this: The business is folding, and I am not interested in topping up the loan account ongoing as it will be closed. Do the drawings from the loan account just mean I have repaid myself money already belonging to me, or is it taxable? Does it count as income, or just me being repaid my own money?
Thanks for any assistance...