The Problem

Traditional Directors Loan Accounts pay 0% interest, with erratic repayments and informal arrangements.

Many owner-managers don't have an ISA because they prefer to invest in their business. Now they can use our platform to use their ISA tax allowance when lending into their company.

Each year, when your company needs funding, you can use our platform to privately syndicate your loan participants. You can choose how much to lend, from £10 up to the annual allowance (currently £20,000).

You may transfer in funds from other ISAs. If you need cash, you may access your capital on the Secondary Marketplace. Simple and straightforward, the IFISA process requires the transfer of bank funds or ISA holdings, which can then be used as normal.

By putting your loan through your ISA allowance you'll be able to benefit from tax-efficiencies similar to that offered by your SASS provider.

A directors loan IFISA gives you an incentive to invest in your business.

Benefits of a Directors Loan Account ISA

Have your business pay you interest on your directors loan

Enjoy tax-free interest on the interest paid to you by your business

Set up in less than 20 min

Renew annually - saving you more

Arrangement fee of 3.25% is returned in 4 months' tax

Flexible loan agreement to suit your business

How does it work?

As a director, you make sacrifices. Interest on your savings should not be one of them.

Ordinarily, any interest paid on shareholder loans is taxable. Now, thanks to the Innovative Finance ISA introduced in April 2017, it is now possible to use your allowance, on your director’s loan and benefit from tax-free interest.

This is achieved using a peer-to-peer loan agreement, a newly regulated financial instrument. rebuildingsociety.com is regulated and authorised by the FCA to facilitate peer-to-peer agreements and is also an approved ISA Manager.

Furthermore, it is one of the only p2p lending platforms that does not take a margin on the loan, meaning that 100% of the repayment amount paid by the borrowing business, is relayed onto the lenders participating in the loan syndicate. The platform takes a small arrangement fee for the formalisation of the loan, which is promptly recovered from the tax savings, within four periods for higher tax rate payers.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

Eg. £100k ISA, arranged at 14% pa

Case Study

Interest earnings after one year: £11,089.58

For higher rate taxpayers, your net gains are £7,174.62!

But the real value comes from years of compounding...

  • 10 years of contributions will be worth £1,493,041.83!
  • 20 years of contributions will be worth £4,478,364.87!

Eg. £20k ISA, arranged at 18% pa

Case Study

Interest earnings after one year: £2872.73

For higher rate taxpayers, your net gains are £2085.93!

But the real value comes from years of compounding...

  • 10 years of contributions will be worth £1,493,041.83!
  • 20 years of contributions will be worth £1,328,377.20!

Let us do the admin!

Arranging a privately syndicated loan with known peers is quick and easy.

Let us do the admin! Our platform is designed to quickly arrange your loan agreement. We hold funds in a segregated client account (like solicitors do) and we hold any security in a trust. The secondary market provides liquidity and its easy to refinance at any time. Remember, the product creates a tax advantage, but the business need for the loan should be a primary consideration.

We are more than just a platform! Founded in 2012, we are one of the most experienced platforms in the market and our friendly team helps entrepreneurs every day. By helping to formalise the separation of personal and business finances, we help you prepare for external investment and we mitigate headaches because we understand the strains and challenges. Our mission is to help you create wealth.