Owe your company money at the year end? See how much s455 tax it owes, at the rate for when each loan was made, when it's due, what a repayment saves and when you get it back. No sign-up.
The rate. Each loan is charged at the dividend upper rate for the tax year it was made in: 32.5% before 6 April 2022, 33.75% from then to 5 April 2026, and 35.75% from 6 April 2026. s455 is charged on loans made in the accounting period, so a loan from an earlier year belonged on that year's return; we show it separately and leave it out of this year's total.
The deadline. s455 is due 9 months and 1 day after the accounting period ends. Nothing is due on any part repaid, released or written off before then.
Which loan a repayment clears. We set repayments against the oldest loan first. That's HMRC's default when nobody says which loan is being repaid, and it matters when older loans carry a different rate.
Getting it back. For a repayment after the deadline, the tax stays due and the company reclaims it 9 months and 1 day after the end of the accounting period the repayment falls in. We assume your later accounting periods keep the same year end.
Not covered. Loans made before 6 April 2016 (charged at 25%), and companies that aren't close companies. Loans of up to £15,000 in total to a director who works full time for the company and owns no more than 5% of it are outside s455 altogether.
Official sources: If you owe your company money · HMRC: loans to participators · When relief is due · Repayments · 30-day rule · Arrangements rule · Loans as a benefit in kind
From the Starter plan (£29 a month ex VAT), Ledgers tracks your director's loan account from the books and prepares a draft Corporation Tax computation. It doesn't file the CT600: you or your accountant check it and submit the return to HMRC. See pricing.
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A temporary Corporation Tax charge on a close company that lends money to a shareholder, most often a director whose loan account is overdrawn at the year end. The company, not the director, pays it if the loan isn't repaid within 9 months of the year end. Once the loan is repaid, written off or released, the company can claim it back.
It matches the dividend upper rate for the tax year the loan was made: 35.75% for loans made on or after 6 April 2026, 33.75% for loans made from 6 April 2022 to 5 April 2026, and 32.5% for loans made from 6 April 2016 to 5 April 2022. A balance built up over several years can be charged at more than one rate.
It's due 9 months and 1 day after the end of the company's accounting period, the same day as its Corporation Tax. If the loan is repaid, released or written off within those 9 months (by 31 December for a 31 March year end), nothing is due on the part cleared. A loan that's written off is taxed on the director as income instead.
Once the loan is repaid, written off or released. If that happens after the 9-month deadline, HMRC won't refund the tax until 9 months and 1 day after the end of the accounting period in which the loan was repaid. The claim must be made within 4 years, and any interest paid on late s455 isn't refunded.
Not without the s455 coming back. If you repay £5,000 or more and borrow £5,000 or more again within 30 days, the repayment is matched to the new loan. If you owed £15,000 or more and, when you repaid, you planned to borrow £5,000 or more again, the same applies whenever you borrow. Clearing the loan with a dividend or bonus that you pay income tax on isn't caught.
Yes. If you owe the company more than £10,000 at any time in the tax year and don't pay interest at HMRC's official rate, the loan is a benefit in kind. The company reports it on a P11D and pays Class 1A National Insurance, and you pay income tax on the benefit.
Related: Director's loan accounts explained · How to pay dividends · Salary vs dividends calculator · Corporation Tax calculator · What is Corporation Tax and when do I pay it?
An estimate, not tax advice. Based on GOV.UK and HMRC guidance as at 13 October 2026. Whether s455 applies depends on the company and the loan; check with your accountant or HMRC before you pay or claim.