Director loan account tax calculator (s455)
If you have taken more out of your company than you have put in, your director loan account is overdrawn, which means you personally owe the company money. While the company is solvent this is mainly a tax issue. If the overdrawn balance is not repaid within nine months and one day of the company year end, the company pays a temporary tax charge under section 455 of 33.75% of the balance. The charge is refundable once the loan is repaid, but it is real money in the meantime. If the company becomes insolvent the position is sharper: the overdrawn balance becomes an asset that the liquidator must collect, and the liquidator can pursue you personally for it. This tool shows the s455 charge on your balance so you can plan, and flags why the loan account matters so much if closure is on the table. HMRC CTM61500
Your s455 charge
If the company is heading for liquidation, remember this balance is money you owe the company that a liquidator will seek to collect. Talk it through with a practitioner before you close the company.
s455 rate 33.75%. Charge applies if the balance is not repaid within 9 months and 1 day of the year end. Refundable when the loan is repaid.
Common questions
What is the s455 tax rate?
Section 455 charges the company tax on a director loan that is still overdrawn nine months and one day after the company year end. The rate is currently 33.75% of the outstanding balance. It is refundable once the loan is repaid.
What happens to my overdrawn loan if the company is liquidated?
The overdrawn balance is an asset the liquidator must collect, and the liquidator can pursue you personally to repay it. You cannot simply write it off. See overdrawn director loan accounts.
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