Friend asked dh for 2 year loan

[ParsnipPuree]

Dh’s closest friend broke down to dh and told him he’s in trouble. Owes £25k to a friend who now needs it back. Dh offered to help on the basis it’s payed back in instalments every month for up to 2 years.

I am friends with his wife who is oblivious. Her dh won’t confide in her. She doesn’t know there’s a problem so will carry on as normal. I don’t think she’s a big spender but that’s not the point. They had a week away shortly before her dh and mine had this conversation.

Im angry because if there was a medical situation they couldn’t cover, that would be one thing but they’re obviously living beyond their means. Dh is taking the money out his company so it doesn’t affect me. If my friend knew she’d be mortified.

rubbiush lol

But that's not the same as this friend is asking to borrow money, not lending it.

For me the top & bottom of it is-does he have 25k lying around that he can easily hand over, no trouble & wouldn't be missed?

I'm guessing that as for a lot of people the answer to that is no.

Therefore the answer to the request be be given loaned it is no.

I was thinking the same😂

There's no tax implications! 😂

You can't just take money out of a company with no tax implications!!! If you could no one would every pay salaries or dividends. They would "loan" everything instead .

I'm not n the UK do maybe there's one sort of tax utopia that I'm not aware of but I would be extremely shocked.

this

Ssshhh! It's all a secret. No one must know. It's a scam. We all know this. The person needs to confront his debts/debtors/addiction.

There will be no interest on the loan.

The wife doesn’t work so no!

There will be no capital paid either!

Surely the solution is his wife gets a job

You’re mistaken then. This is a company with an excellent accountant and I’ve just heard him confirm this is the case. Maybe a loophole I’ve no idea but no tax implication.

Agree - if it is company money, there will absolutely be tax implications. At the very least, if it is regarded as drawings by OPs DH he has to pay PAYE on it. And frankly, that’s the best option because OP’s DH will have to repay it himself from personal funds if it is not repaid by the BF.

The attached describes a directors loan, which is what this is, I think? The director (OPs DH) is effectively taking a personal loan from the company and then using it to give to his friend.

https://www.1stformations.co.uk/blog/borrow-money-from-limited-company/

It’s not the director or shareholder taking the money out. It’s a genuine loan.

A director actually can take a loan out of the company at any point, but if it isn’t repaid at year end, interest must be added.

That is a simplistic version and there can be nuances but in a nutshell.

Friend has told dh he knows he has been living beyond his means and will rein it in.

So he needs to stop living beyond his means plus find 2k a month?

I wonder what his earnings & outgoings are?

Life would just be so simple and everything should carry on as normal if he just says NO! There probably isn’t even a friend waiting for the money. Op I hope there isn’t a similar thread in 3 months time saying “gave friend 25K, now we never see him, sorry but it’s all wrong

If he can’t afford to pay friend back how can he afford to pay DH back?

25k over 2 years is a grand a month. That’s a lot of cash to have spare and if he had that spare what he £25k in debt?

None of her friends work and sounds like he doesn’t want to burst her bubble. She’s def not my best friend but I’ve known her for years. Dh recently bought me a lovely car and she was so genuinely happy and excited (more than I was), she’s a nice girl.

i told dh again it’s so wrong he doesn’t confide in his wife. I’ll be reluctantly telling her if he fucks around with the repayment.

Never lend money unless you're prepared not to get it back.

Just tell her noooooww.

😂

Jesus it gets worse, you're losing out on 2 years of interest on the money?

Are you sure you're happy for your husband to give away £25000?

Because that's how you need to frame it, you and your DH won't see this money again.

Honestly, why wait? Why are you happy to give away £25000?

Are you incredibly wealthy and won't miss it?

So now it's a 12 month loan with repayments of £2000 a month?

Yeah right. This has disaster written all over it.

Quite frankly I would be going ape-shit. What if you need that money for something urgent yourselves? None of us know what's round the corner. As PP say you won't get that money back.

And if DH won't listen to you, his wife, and puts his so-called friend above you, I'd be telling him that you will be telling your friend as she has a right to know, and you are going to put her first just as he is putting his friend first.

Oh so now it's a 1 year loan?

How is this man going to find £2000 a month if he's spending beyond his means and the wife not finding out.... ?