- #1 Business Rescue Experts
- Helping Directors in Debt
- Same Day Advice
For free expert advice, send us a message and we’ll be in touch
A directors’ loan account (DLA) is a notional balance owed between directors and the company. This is a fairly common process in many companies of various sizes, with the process used to record:
- money injected into a business by directors
- money taken out of a business by the directors
There are various legal and financial implications at play – particularly related to tax – if you don’t go about paying back your directors’ loan in a correct and timely manner, so if you are worried about any issues related to directors’ loan account rules or an overdrawn directors’ loan account, get in touch with the expert team here at The Insolvency Experts today.
The wealth of legal and financial qualification across our team ensures that we operate within all of the required legal guidelines while providing cost-effective and timely guidance. Our personable financial experts ensure you are given helpful and relatable advice that keeps you up-to-speed throughout the process. We offer peace of mind at a stressful moment through working to find a financial outcome that satisfies creditors, the government, shareholders and directors whenever possible.
We understand that many companies find themselves insolvent through no fault of the directors, so if circumstances have brought on financial difficulties, we help our clients to find a workable financial solution. If you want to discuss our available insolvency practitioners Bolton services, get in touch with us today. We act on behalf of our clients to find the best possible solution to their current financial difficulties.
Our expert financial staff are available to discuss options surrounding Liquidation, Administration and a range of other services we provide, with this advice offered through a free initial consultation. Additionally, if you are seeking an estimate on the price of a Liquidation process for your company, you can make use of our free quote calculator.
Go to Section:
- Liquidation & Closure
- CVA Insolvency
- Director Duties
- Company Administration
- HRMC Debt Issues
- Dealing with Baillifs
- Contact Us
3 Key Questions on a directors’ loan account
What are the legal implications of an Overdrawn Directors’ Loan Account?
DLAs are perfectly legal and there are no issues taking one out (although it needs to be approved by shareholders if it is over £10,000). However, it needs to be repaid or offset within nine months of your company’s financial year end, or it is seen to be overdue and judged as an interest-free loan from the business, with tax implications.
Call our friendly experts on 0300 303 8284
By quickly taking back control we can help you solve the problems that the business has.
Is my Directors’ Loan Account in debit or credit? What next?
If the business owes you more than you owe it, your DLA is known as ‘in credit’. Conversely, if you owe the business more than you owe it, the DLA shows as a debit balance (it is overdrawn). Things get a bit more complicated when the business is viewed to be insolvent and the DLA is overdrawn.
In this situation, it is deemed to be an asset of the business, and a, appointed insolvency practitioner will look to try to recover that money to help pay off creditors. There is a chance that the loan will be written off if it’s judged to be irrecoverable, but in most cases, some or all of the loan will need to be repaid.
How do I find the right advice on my Directors’ Loan Account?
If you have any concerns about Directors’ Loan Accounts or you need advice on repayment if your business is now insolvent, call The Insolvency Experts’ friendly and professional team, who are ready to help. Please click over to our Contact page if you’re looking to speak to us today for any further advice on directors’ loan accounts.
Company Liquidation Quote
How much will it cost to liquidate your business?
Try our calculator to find out…