Director's Loan
Director's loan account calculator — s455 tax and the repayment deadline.
s455 tax due
£6,435
Clear £18,000 by 1 January 2028 and nothing is due.
- Still outstanding
- £18,000
- Rate
- 35.75%
- Benefit in kind
- Likely
- Over £10,000 at any time, interest-free
Repaid before the deadline
Rates and rules from Director's loans (HM Revenue & Customs) and Corporation Tax (HM Revenue & Customs). Found a discrepancy? Report a calculator issue with the tax year and figures you used, or read how our calculators work.
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Ask an accountantQuestions
Frequently asked questions.
What is s455 tax?
A temporary tax a close company pays when a loan to a director or shareholder is still outstanding nine months and one day after the year end. It is refunded once the loan is repaid, but only nine months after the end of the accounting period of repayment.
Can I clear the loan with a dividend?
Yes, if the company has enough distributable reserves. The dividend is taxable on you personally, so it is worth comparing with the cost of leaving s455 in place.
What is bed and breakfasting?
Repaying £5,000 or more and taking a new loan of £5,000 or more within 30 days. HMRC matches the two, so the repayment does not count towards avoiding s455.
When is a director's loan a benefit in kind?
When the balance goes over £10,000 at any time in the tax year and interest below HMRC's official rate is charged. It is reported on a P11D and the company pays Class 1A NI.
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