2 min read
What it tracks
The director's loan account logs amounts you take from or lend to the company outside of pay, dividends and expense reimbursements. If you owe the company, it is overdrawn; if the company owes you, it is in credit.
The tax to watch
An overdrawn account not repaid within nine months of year end can trigger a temporary corporation-tax charge (S455), and a loan over £10,000 can create a benefit-in-kind. Keep it documented. See can my company lend to me.
What it means for you
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See business loans or apply online.
Frequently asked questions
Is a director's loan account a problem?
Not if managed well and documented. An overdrawn account has tax consequences if not repaid in time, so keep it in credit or clear it within nine months of year end.
Can I take money from my company this way?
Yes, but it goes to the director's loan account and is governed by tax rules if overdrawn. For business needs, proper business finance is usually cleaner.
Related reading
Can my company lend money to me as a director?
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Business loan vs director's loan: what's the difference?
A business loan is external finance the company borrows from a lender; a director's loan is money that moves…
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Do I need shareholder approval to borrow?
Usually the directors can borrow on the company's behalf without a shareholder vote, provided the articles of…
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Does an overdrawn director's loan account affect borrowing?
An overdrawn director's loan account is a yellow flag, not a red one — lenders note it but assess the whole…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.