Director Loans

The Director Loan Account (DLA) records money moving between a limited company and its directors. A balance is overdrawn when the director owes the company, and an overdrawn balance carries two statutory consequences: an S455 Corporation Tax charge on the outstanding amount, refundable once the loan is repaid, and, above the beneficial-loan threshold, a Benefit in Kind on the cheap or interest-free borrowing reported through a P11D. The rates, bands, and thresholds applied are returned in each response rather than fixed here, so the figures track the fiscal year in force.

Every movement carries a loan type, one of loan_to_director, loan_from_director, repayment_to_company, repayment_to_director, dividend_offset, salary_offset, or write_off. The type fixes the direction of the movement and the journal it posts. The amount sign follows the direction: a positive amount is money from the company to the director, which increases the director's debt to the company; a negative amount is money from the director to the company, which reduces it. The sign must agree with the type, and the journal accounts are resolved from the type rather than supplied by the caller.

For S455 the balance views aggregate connected persons (a spouse, child, parent, or associate linked to the director) into the primary director's exposure, following the connected-persons treatment. Year-end snapshots capture the closing balance, the S455 exposure and its deadline, and the Benefit in Kind, for Corporation Tax and P11D reporting; the S455 deadline is nine months and one day after the period end. Monetary fields are in pence.