TOOLS · S455 CALCULATOR

Director's loan s455 charge. 33.75% on what's not repaid.

If a director's loan account is overdrawn at the year end and not cleared within 9 months and 1 day, the company pays a 33.75% s455 corporation tax charge on the outstanding balance.

Your inputs

Loan amount overdrawn (£)

Accounting period end

Date drawn

Loan still outstanding

s455 charge

£13,500

33.75% of outstanding balance. Due nine months and one day after period end (2026-01-01). Refundable when the loan is repaid, but the cash sits with HMRC in the meantime.

Beneficial loan interest (P11D)

£1,815

Loan exceeds £10,000 so HMRC official rate (2.25%) applies as a benefit-in-kind. Reportable on P11D and Class 1A NIC due. Calculated over 736 days.

Total cost

£15,315

s455 charge plus beneficial loan interest, on top of the underlying loan.

Borrow to clear the DLA →About CT funding

s455 rate currently 33.75% (matched to upper dividend rate). HMRC official rate currently 2.25%; verify before relying on the calculation.

Estimate only. Director's loan accounts have nuance around bed-and-breakfast rules, associated companies, and aggregated loans. Speak to your accountant.