26/05/2026
If you run a limited company, you almost certainly have a directors' loan account, but do you know what's in it?
Any money you take out of the company that isn't salary or dividends is recorded as a loan. Let that balance creep too high, and you could be looking at a 35.75% Section 455 tax charge from HMRC plus potential benefit in kind liability on top.
The good news is that with a bit of visibility and the right advice, it's straightforward to manage.
We've written a plain-English guide to what a directors' loan account is, when it becomes a problem, and what you can do about it.
👉 Read the full article: https://pgtax.co.uk/news/what-is-a-directors-loan-account-and-why-does-it-matter
Got questions about your own DLA? Your first consultation with PG Owen is free. Get in touch.
Understanding What Is a Director's Loan Account is, how it works, and its tax implications can save you a significant amount of money.