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Limited Company Contractors FAQ - October 2022

When do I need to repay my directors loan in order to avoid an additional tax charge?

If your company has lent you money during its financial year, there will no additional tax liabilities if the loan is less than £10,000 and repaid within 9 months of the company tax year. If a loan is in excess of £10,000 and is interest free, you may incur a benefit in kind on your self-assessment. If the loan remains outstanding nine months after the year end, then an additional S455 charge to Corporation tax will be due at 33.75% if the value of the loan. This can be reclaimed once the loan is repaid.

Can I pay my Self-Assessment bill through my tax code?

You can pay your tax bill through your PAYE tax code as long as you owe less than £3,000, you already pay tax through the PAYE system and you have submitted your paper tax return by 31 October or your online tax return online by 30 December

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