What is Director's Loan Account?

A director's loan account (DLA) records money lent between a director and their company, outside of salary, dividends or expenses. An overdrawn DLA (director owes the company) outstanding more than nine months after year-end attracts s455 Corporation Tax at 33.75%, plus a benefit-in-kind charge if the balance exceeds £10,000. DLA balances must be disclosed in statutory accounts.