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Director's Loan Account (Section 455) Calculator
Enter your loan amount, the date it was made, and your company year end to see your Section 455 charge, any benefit in kind, and your repayment deadline, instantly.
Step 1 · The loan
Loans from 6 Apr 2026 carry a 35.75% Section 455 rate. Earlier loans carry 33.75%.
As a %. Enter 0 if it's interest-free. HMRC's official rate is 3.75%.
Only used to work out tax on any benefit in kind.
Step 2 · Company year end and repayment
The Section 455 deadline is nine months and one day after this date.
How is this calculated?
Section 455 applies when a loan to a director-shareholder of a close company is still outstanding nine months and one day after the end of the company's accounting period. The rate is 33.75% for loans made before 6 April 2026, and 35.75% for loans made on or after that date. It's paid alongside Corporation Tax and refunded once the loan is repaid.
If the loan also exceeds £10,000 at any point and interest is charged below HMRC's official rate of 3.75% (2026/27), the shortfall is a taxable benefit. The director pays income tax on it via P11D at their marginal rate, and the company pays 15% Class 1A employer NIC on it.
These figures are for guidance only, based on 2026/27 rules for a single, standard close company participator loan. They don't account for multiple loans, partial-year repayments, write-offs (taxed differently to repayment), or the 30-day "bed and breakfasting" rule. Speak to us before making decisions.
What is a director's loan account?
It's the running record of money moving between you and your company that isn't salary, a dividend, or a repaid expense. Take money out and your account is overdrawn, meaning you owe the company. Put money in and it goes into credit, and the company can usually repay you tax free.
Can you take a director's loan from your limited company? Yes, but loans above £10,000 need shareholder approval, and the tax cost depends on how long the loan runs.
Director's loan tax: Section 455 and benefit in kind
If a loan is still unpaid nine months and one day after your company year end, the company pays Section 455 tax. It's refundable once you repay the loan.
| Loan made | Section 455 rate | On a £20,000 loan |
|---|---|---|
| Before 6 April 2026 | 33.75% | £6,750 |
| On or after 6 April 2026 | 35.75% | £7,150 |
If the loan is also over £10,000 and you pay less than HMRC's 3.75% official interest rate, you pay income tax on the saving and the company pays 15% Class 1A NIC. Charging at least 3.75% removes that benefit in kind. Unlike Section 455, it isn't refundable.
Quick example: a £20,000 interest-free loan from August 2025, not repaid in time, costs £6,750 of Section 455 plus £300 income tax and £112.50 Class 1A NIC on the benefit at 40%. Repay it before the deadline and the Section 455 part is nil.
How to repay a director's loan
You can repay from your own money, declare a dividend if the company has enough profit, or pay a salary or bonus, which is usually the costliest option. Don't repay and redraw within 30 days, since HMRC's bed and breakfasting rules can cancel the repayment.
Want the deeper read? See our guide: S455 Tax: What It Is and How to Get It Back.
Director's loan calculator FAQs
Can I take a director's loan from my limited company?
Yes. A company can lend to a director, but loans above £10,000 need shareholder approval by ordinary resolution under the Companies Act 2006. Record the loan properly and repay it within nine months and one day of the year end to avoid Section 455 tax.
What is the Section 455 tax rate for 2026/27?
35.75% for loans made on or after 6 April 2026, and 33.75% for earlier loans. The company pays it on loans still outstanding nine months and one day after the year end.
What is the HMRC interest rate for director's loans?
The official rate is 3.75% for 2026/27. If your loan is over £10,000 and you pay less than that, the difference is a taxable benefit in kind. HMRC can review the rate during the year, so check GOV.UK for the latest figure.
How long do I have to repay a director's loan?
Nine months and one day after the end of the company's accounting period. For a 31 March year end that is 1 January the next year. Repay in full by then and no Section 455 tax is due.
Can I get Section 455 tax back?
Yes. Once the loan is repaid, written off or released, the company can reclaim it. The claim can only be made nine months and one day after the end of the period in which that happened, and within four years.
How accurate is this director's loan calculator?
It follows the 2026/27 rules for a single loan. It does not cover multiple loans, repayments during the year, write-offs or the 30-day repayment rules, so check complex cases with an accountant.
Based on 2026/27 rules. See GOV.UK: money you owe your company.