I was considering setting up a loan/investment between myself and my company. The idea would be to put funds that are either earmarked for certain things (such as tax and VAT) into an interest bearing investment.

Obviously I could go and setup a fixed deposit, or call account (and so on), but it would seem like a better idea to set up an agreement with myself (a director) and then put the money into my bond, and pay interest to the company. Seems like a win-win situation....emphasis on seems.

I'll have to pay tax on the money earned from having the funds in my bond, but that would be offset against the interest paid, and possibly against the interest on the bond amount.

Any issues with doing that (both ethically and legally)? Anything that I need to watch out for?