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Posted on June 26, 2023June 16, 2023 by admin

Tax Tip – Don’t let your DLA (director’s loan account) get overdrawn

The company must pay tax on overdrawn loan accounts if not repaid within 9 months of the year end (and there are clauses that stop you repaying and immediately withdrawing!)

If the amount is over £10,000 then the individual director will have to pay a tax on the ‘benefit in kind’ of a beneficial loan

So please check your management accounts before taking money out of the company and ensure that you leave enough in to pay VAT, corporation tax, and any other bills.

CategoriesBusiness, Tax Tip Tagsbusiness advice, business owner, director’s loan account, DLA, tax tip, tax tips

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Telephone: 0117 375 1123

Registered Number: 10847858 Registered Office: Henleaze House Business Centre, 13 Harbury Road, Bristol BS9 4PN

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