Directors Loan
Taking money from a limited company is not as simple as transferring funds from the company bank account into your personal account. A limited company is legally separate from its directors and shareholders. The money held by the company belongs to the company, even where you are the only director and shareholder. When a director
Read More
What Is a Director’s Loan Account and How Do You Keep It Under Control? A director’s loan account records money moving between a company and its director. It is used when money is borrowed from or paid into the company and the transaction is not salary, dividends, expense repayment or repayment of money previously lent.
Read More Salary vs Dividends: What Limited Company Directors Should Consider Before Taking Money Out For many limited company directors, the question is simple on the surface: should I pay myself through salary, dividends, or a mixture of both? The answer is usually a mixture, but the right balance depends on your company profits, personal tax position,
Read More Limited Company Directors: Profit Extraction Guide
May 30, 2026Tax-Efficient Profit Extraction for Limited Company Directors in 2026/27 For limited company directors, the way you take money out of your company can make a significant difference to your overall tax position. In 2026/27, the familiar mix of salary and dividends remains important, but rising dividend tax rates, employer National Insurance costs and corporation tax
Read More
What happens if I borrow money from my limited company? You can borrow money from your limited company, but it should not be treated like personal spending from your own bank account. If you take money that is not salary, dividend, expense repayment or repayment of money you previously put into the company, it may
Read More
How do I pay myself from my limited company?
May 13, 2026How do I pay myself from my limited company? If you run your own limited company, you do not simply take money in the same way as a sole trader. A limited company is a separate legal entity, so money taken from the company needs to be treated correctly. The main ways to pay yourself
Read More
How to Pay Yourself Tax Efficiently as a Director in 2026/27
April 18, 2026How to Pay Yourself Tax Efficiently as a Director in 2026/27 If you run a limited company, one of the most important decisions you make each year is how to pay yourself. Get it right, and you can significantly reduce your tax bill.Get it wrong, and you could end up paying far more tax and
Read More Writing Off a Director’s Loan Account in the UK
March 29, 2026Writing Off a Director’s Loan Account in the UK (2026 Guide) If you run a limited company and have taken money out that wasn’t salary or dividends, you may have an overdrawn Director’s Loan Account (DLA). A common question is: Can I write off my Director’s Loan Account? The short answer is: Yes — but
Read More
What Is Bed and Breakfasting?
February 22, 2026What Is Bed and Breakfasting? When a director’s loan account (DLA) becomes overdrawn, the resulting tax exposure can be significant. In particular, the section 455 charge creates a strong incentive to clear an overdrawn loan before the statutory deadline of nine months and one day after the end of the company’s accounting period. Where
Read MoreDirectors’ Loan Accounts Explained
February 21, 2026Directors’ Loan Accounts Explained: Tax Charges, Benefits in Kind and Section 455 Directors’ loan accounts (DLAs) are a common feature of owner-managed businesses and often arise quite innocently. However, when a director’s loan account becomes overdrawn and is not managed carefully, it can trigger a combination of personal tax charges, National Insurance contributions and corporation
Read More