Read the latest insights from our experts

Reclaiming tax once director's loan repaid

July 12, 2016 by Sian Kelly

In family companies, many directors and shareholders maintain loan accounts with the company. As long as any loans are cleared within nine months and a day of the year end (i.e. by the date by which corporation tax for the period is due), the only tax charge that potentially arises is a benefits in kind charge if the total balance owed by the director tops £10,000 at any point in the tax year.