COOKIE POLICY | PRIVACY POLICY | DISCLAIMER



Tel: 01403 780 770

Building and protecting your wealth

FRIDAY FAQ: What is a director’s loan?

Every Friday we aim to post an answer to a FAQ about mortgages, tax, investments, money matters, business or retirement. You can have your say too. Send an email with your FAQ to info@dentalandmedical.com


This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice.


Q. What is a director’s loan?

Answer: A director’s loan is when you or a close family member takes money out of your limited company that is not salary, a dividend or an expense repayment, or money you have previously paid in or loaned the company.

How a director’s loan works?

If you decide to take a director’s loan, you must keep a record of any money that is taken out or that is paid back into the business. This is known as a ‘director’s loan account.’

Any money taken out as a director’s loan must have be approved by all stakeholders, particularly if the loan is over £10,000.

It is important to take all the available money out of the business as you will need to retain some to cover tax liabilities.

HMRC state that the loan must be repaid nine months and one day of the company’s year-end. If you fail to do, you could be charged tax on it at a rate of 32.5% on the outstanding amount.


Follow us on for regular financial and mortgage updates

Twitter                     LinkedIn

If you found this article interesting, why not share it


Meet the Advisers

With over 20 years experience our advisors can help you meet your business and personal goals.


Who we Help

All our clients are doctors and dentists, just like you. As specialists we know your industry inside out.


Info & News

Make this the place you visit to keep up to speed with financial news for your sector.


Contact Us

Wherever you are in the UK we can help you build and protect your wealth.

Get Connected

to our specialist team

Tel: 01403 780 770
Email: info@dentalandmedical.com

Keep Updated

Simply register your name and email below and receive our updates direct to your inbox

Dental & Medical Financial Services News Updates

Just for doctors and dentists

Read more news

COOKIE POLICY | PRIVACY POLICY | DISCLAIMER


Dental and Medical Financial Services is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority. Company registered in England no. 9158580 Registered office: 1 Market Square, Horsham, West Sussex, RH12 1EU

© 2014 Dental & medical Financial Services. All rights reserved. Website design by Goldmine Media.