UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
Here is my original reply; did you not receive it?
Hello, Sarah, thank you for asking for my advice.
Cash could be paid into the company by a third party or even a director as a loan to the company. It can be repaid at some future indeterminate date. There are no tax implications involved unless interest is paid on such loans in which case that interest is allowed against the company's Corporation Tax (CT) position and must be taxed on the individual through the CT61 procedure [company pays interest net of income tax at the basic rate which is paid direct to HMRC].
Payment of salaries to directors must be done through PAYE as directors are employees per se.
Dividends may onky be paid from surplus funds so beware of the company making a fraudulent preference, a criminal offence, not paying one creditor in favour of another. Dividends should be paid in proportion to shareholdings although I suppose this could be bent if all shareholders agree. Remember if people fall out, and it has happened in the past, the whole caper would be viewed with the deepest suspicion unless scrupulously correct. Dividends are not allowable against the company's CT computation.
Have I helped? Don't hesitate to follow up on this thread if you do not understand anything.