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Directors' Loan Accounts Explained


Learn how to use a director’s loan account effectively while avoiding the potential tax traps
and taking advantages of the tax saving opportunities.

Helped me to understand in more detail the complexities and tax implications.
~Stephen Cox~
Business Owner
This report is an excellent guide in plain English that we always use when advising clients on the advantages and pitfalls of Directors’ Loan Accounts.
~Rebecca Jaques~
Very useful, it succintly summarises all the relevant issues with accompanying references to the legislation.
~Bharat Handa~
Tax Consultant
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**New 2024-25 Edition Now Available **

What’s in the Directors’ Loan Accounts Explained Guide?

A director’s loan account is a mechanism of keeping track of the transactions between the director and their personal or family company.

In this guide which has been updated following this year's Budget, Sarah Bradford explains some of the planning opportunities and pitfalls associated with the use of directors’ loan accounts.

The guide also covers:

  • What is a director’s loan account?
  • Overdrawn directors’ loan accounts
  • What is a close company and why does it matter?
  • The meaning of ‘loan’ in director’s loan account 
  • The s445 tax charge
  • Clearing an overdrawn director’s loan account
  • Benefits in kind
  • Tax planning opportunities 
  • Anti-Avoidance
  • Directors’ loan accounts in credit

And much more.

What is a Director’s Loan Account?

A director’s loan account is a mechanism of keeping track of the transactions between the director and his or her personal or family company.

This guide explains how to use directors’ loan accounts correctly while avoiding some of the more common tax traps around them. 

Who is the Director’s Loan Account Guide for?

This guide is perfect for company directors who want to reduce their tax liability, stay on the right side of the law and avoid the common UK tax traps around director’s loan accounts. Get your copy today to learn more about the most efficient uses of director’s loan accounts.

The director’s loan account report is also popular among accountants and tax professionals as seen in our testimonials. The report gives tax professionals and accountants an in-depth understanding of directors’ loan accounts and how to use them to maximise tax efficiency for their clients.