Are Your Directors' Loan Accounts HMRC Compliant? | Apex Accountants

Описание: Directors’ Loan Accounts Explained: UK Tax Rules Every Director Must Know

Directors’ loan accounts are one of the most common causes of HMRC enquiries for UK companies. Many directors take money from their company without realising the tax consequences. If managed incorrectly, this can lead to unexpected tax bills, penalties, and interest.

In this video, we explain Directors’ Loan Account (DLA) rules in the UK, including how HMRC treats loans, when s455 tax applies, and how to stay compliant.

If you are a company director or shareholder, this guidance is essential.

✔️ What Is a Directors’ Loan Account?
A directors’ loan account records money taken from the company that is not salary, dividends, or expense reimbursement. If the account goes overdrawn, it becomes a loan from the company to the director.

✔️ When Does s455 Tax Apply?
If a loan is still outstanding nine months after the company year end, the company may need to pay s455 Corporation Tax at 33.75% of the balance. This tax applies even if the company makes no profit.

✔️ Can s455 Tax Be Reclaimed?
Yes. The company can reclaim s455 tax only after the loan is fully repaid. The reclaim is not immediate and can affect cash flow.

✔️ Common Directors’ Loan Risks

Loans not repaid within nine months

Incorrect or missing DLA records

Using journal entries instead of real repayments

Writing off loans without reporting personal tax

Assuming dividends can be backdated

✔️ What Happens If a Loan Is Written Off?
Written-off directors’ loans are treated as personal income. This may be taxed as employment income or dividends, and can trigger Income Tax and National Insurance.

✔️ How to Manage Directors’ Loans Correctly

Keep accurate and up-to-date DLA records

Plan repayments before the nine-month deadline

Use dividends or salary properly to clear balances

Review DLAs regularly, not just at year end

Take professional advice before withdrawing funds

At Apex Accountants, we help UK companies and directors with:

Directors’ loan account reviews

s455 tax calculations and repayments

CT600 and CT600A reporting

Advice on clearing loan balances tax-efficiently

HMRC enquiry support and compliance

We help you avoid costly mistakes and stay on the right side of HMRC.

📞 0203 883 4777
📧 [email protected]
🌐 www.apexaccountants.tax

Book a free consultation to review your directors’ loan account and reduce your tax risk.

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