Can I take money out of my company as a director's loan?
I need some cash from the business before year end but don't want to take it as salary or dividends.
Asked by Anonymous on 3 November 2025
1 Answer
Yes, you can borrow from your own company via a director's loan account, but there are rules to be aware of. If the loan isn't repaid within nine months of your company's year end, the company faces an extra Corporation Tax charge (currently 33.75%, matching the higher dividend rate), and loans over £10,000 can also trigger a benefit-in-kind for you personally unless interest is charged at HMRC's official rate. Keep clear records of every withdrawal and repayment, and speak to your accountant before relying on a director's loan as a regular source of income.