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IF YOU are operating two or more companies, try to avoid making inter-company loans.

Unless the shareholdings in both are identical, you will usually need to charge interest to the borrowing company.

If you don’t, the value of the interest can be a deemed dividend, which leads to tax complications.

The best thing to do, if you want to move money between companies, is to take money out of the lending company, as your drawings (assuming you have a sufficiently big current account).

Lodge it into the borrowing company as an advance from you, the shareholder.

One thing you should never do is to pay one company’s bills from the other company’s bank account.

It usually creates a lot of accounting work and can be avoided by a transfer of fund, as described above.