Amount still owed to the company 9 months after year end.
Calculates the S455 Corporation Tax charge on overdrawn director's loan accounts not repaid within 9 months of year end.
The S455 charge is refundable once the loan is repaid, but HMRC only refunds 9 months after the accounting period in which repayment occurs.
The S455 rate mirrors the dividend upper rate to prevent tax avoidance via loans instead of dividends.
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S455 applies when a director has an overdrawn loan account at the company's accounting year end and has not repaid it within 9 months and 1 day after the year end.
You can write off the loan (which creates an income tax charge on the director) or repay it before the 9-month deadline. HMRC may challenge "bed and breakfasting" where loans are repaid and re-drawn within 30 days.
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