A director’s loan account (DLA) is effectively a loan from the business to the director. If the director uses the company’s bank account to pay for personal items, the transaction will be debited to the DLA likewise, if the director pays for a business item using their personal account then we will process a journal which will be credited to the DLA. If the DLA has more debits than credits, it will be overdrawn at the year end and the director should repay this amount within 9 months and 1 day of the year end to avoid paying S455 tax. If the director does not repay within this time frame then S455 tax will be due however once the DLA is repaid, the director will receive a refund of the tax paid.