What are director's loans? The comprehensive guide to DLAs.
If you take money out of your limited company that isn’t a salary, dividend, or expense payment, it’s usually considered to be a director’s loan. These transactions are recorded in a director’s loan account (DLA), which shows the money you take out or pay into the company.
Our guide explains how DLAs work, what the guidelines are for director’s loans, and what tax implications you might encounter. We’ll also cover how to account for director’s loans in your company’s bookkeeping, to help you stay compliant with HMRC rules!