Director's loans

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

  • a business expense for your company
  • personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

  • pay you the interest less Income Tax at the basic rate of 20%
  • report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue and Customs.

HMRC Shipley Accounts Office
0300 051 8371
Monday to Thursday, 9am to 4.30pm
Friday 9am to 4pm
Find out about call charges