Fill in the figures, then click Work out my s455 tax.
Result
Ways to clear the loan
| Option | Tax cost | What it needs |
|---|
What to do
| Step | What it means |
|---|
What it does, and what it leaves to you
- Covers: s455 tax at the rate for old and new loans, the nine-months-and-a-day due date and the refund date, the beneficial loan benefit and Class 1A NIC, and the tax cost of clearing the loan by dividend, bonus or repayment.
- Gives: the amount and date to pay, the cheapest way to clear it and a summary you can hand to your accountant.
- Not decided: loans written off or released, loans to associates, close company status, transactions with several directors, interest on late s455, and anything that changed after this was written.
Common questions
What is s455 tax on a director's loan?
A tax charged on a close company when a director or shareholder owes it money nine months and a day after the company's year end. It is 33.75% of the loan for loans made before 6 April 2026 and 35.75% for loans made on or after that date, and it is repaid to the company once the loan is cleared.
When is s455 due?
Nine months and one day after the end of the accounting period, the same date as the corporation tax. For a 31 March year end that is 1 January the following year.
How do I avoid s455?
Clear the loan before the due date, by repaying it, or by declaring a dividend or paying a bonus that is set against it. Repaying and then borrowing again within 30 days does not work, and larger repayments with arrangements to re-borrow are ignored.
Is there tax on a director's loan over £10,000?
Yes. If the balance goes over £10,000 at any point in the tax year, the interest you do not pay compared with HMRC's official rate is a taxable benefit for you, and the company owes Class 1A NIC on it. Paying interest at the official rate removes it.
Is a dividend or a bonus cheaper for clearing the loan?
Usually a dividend, because a bonus carries employee and employer NIC. The calculator shows both, after corporation tax relief on the bonus. A dividend needs distributable profits.
Is my data uploaded anywhere?
No. Everything is calculated in your browser and nothing is sent.