s.455 charge calculator.
Work out the s.455 charge on an overdrawn director's loan account — the split 33.75% / 35.75% rates around 6 April 2026, the nine-month repayment deadline, and when the refund comes back.
Your overdrawn balance, split by when it was drawn
Enter the overdrawn balance to see the charge. If the whole loan was drawn before 6 April 2026, put it all in the first box.
How the calculator works
Section 455 of the Corporation Tax Act 2010 charges the company — not you personally — when a director’s loan account is overdrawn at the accounting year end and still not cleared nine months and one day later. The rate is pegged to the dividend upper rate in force when each advance was made, which is why the calculator asks for the balance in two slices: drawings up to 5 April 2026 are charged at 33.75%, drawings from 6 April 2026 at 35.75%. One overdrawn figure, two rates, one blended bill.
The nine-month deadline is the same day the company’s Corporation Tax falls due, so if you know one date you know both. HMRC’s overview is at gov.uk on director’s loans. For the full picture — the £10,000 benefit-in-kind threshold, write-offs, and the records that keep an HMRC enquiry short — read our guide to director’s loan records and the s.455 charge.
What the result means
- Repay by the deadline and the charge never falls due. The figure shown is the exposure, not an inevitability — it exists to tell you what clearing the balance in time is worth.
- Miss it and the company pays the charge with its Corporation Tax, then reclaims it after the loan is repaid — with the refund itself on a nine-month delay from the following year end.
- The blend matters. Treating a mixed balance as all-33.75% understates the bill; treating it as all-35.75% overstates it. The calculator charges each slice at its own rate, the way HMRC will.
Quick answers
What is the s.455 rate for 2026?
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The rate tracks the dividend upper rate in force when each advance was made: 33.75% for loans made up to 5 April 2026, and 35.75% for loans made on or after 6 April 2026 (the Autumn Budget 2025 rise). A balance built from drawings on both sides of that date is charged at a blend, because each advance carries its own rate.
When does the s.455 charge become payable?
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Nine months and one day after the end of the accounting period in which the loan was outstanding — the same day as the company's Corporation Tax. Repay the overdrawn balance before that date and no charge arises for that year.
Do I get the s.455 money back?
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Yes — once the loan is repaid or written off the company can reclaim the charge, but the refund only becomes due nine months and one day after the end of the accounting period in which the repayment happened. It is a cash-flow cost, not a permanent tax.
Can I repay just before year end and redraw after?
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The rules anticipate that. Where £5,000 or more is repaid and redrawn within 30 days ('bed and breakfasting'), HMRC matches the repayment to the redrawing and treats the balance as never cleared, so the s.455 charge stands.
This calculator is general information for UK limited companies, not legal, tax, accounting or company secretarial advice. It runs entirely in your browser — nothing you type is sent to us or stored. Rates and rules change; check the linked official guidance and speak to your accountant about your own situation.
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