Directors Loan Tax Calculator
Calculate S455 tax and benefit-in-kind on overdrawn directors loan accounts.
Directors Loan Details
Enter loan details to calculate tax implications
Important Disclaimer
This tool provides indicative calculations only and does not constitute financial, accounting, tax, or legal advice. The accuracy of results depends on the accuracy of information you provide. Consult a qualified professional for complex situations.
Frequently Asked Questions
What is the S455 tax rate for overdrawn director loans in the 2026/27 tax year?+
The S455 tax rate for overdrawn director loans is 35.75% for the 2026/27 tax year. This rate applies to the outstanding balance of the loan that has not been repaid by the end of the accounting period. The tax is due nine months and one day after the end of the company's accounting period.
How is the dividend allowance calculated for directors in 2026/27?+
For the 2026/27 tax year, the dividend allowance is set at £500. Dividends received up to this threshold are tax-free regardless of the director's income band. Any dividends exceeding £500 are taxed at the applicable rates of 10.75%, 35.75%, or 39.35% depending on the total income level.
When does the 15% employer National Insurance rate apply to directors?+
From April 2026, the 15% employer National Insurance rate applies to all earnings above £5,000 per year for directors. This rate is charged on the portion of the director's salary and benefits that exceeds the £5,000 threshold. It replaces the previous secondary threshold structure for the 2026/27 tax year.
What is the VAT registration threshold for the 2026/27 tax year?+
The VAT registration threshold for the 2026/27 tax year is £90,000 in taxable turnover over any rolling 12-month period. Companies exceeding this limit must register for VAT and begin charging it on their supplies. Failure to register on time can result in significant penalties and interest charges from HMRC.
When does Making Tax Digital for Income Tax Self Assessment become mandatory?+
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) becomes mandatory for self-employed individuals and landlords with annual income over £50,000 in the 2026/27 tax year. This requires keeping digital records and submitting quarterly updates to HMRC. The threshold for mandatory participation is set at £50,000 for the upcoming tax year.
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