For many owner-managed businesses, the Director’s Loan Account (DLA) is one of the most commonly used yet most misunderstood parts of the company’s finances. Used well, it can offer flexibility and convenience. Used badly, it can trigger unexpected tax charges, increased scrutiny from HM Revenue & Customs (HMRC), and cash‑flow issues for both the director […]
Tag Archives: loan account
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Directors loan account, what is it? A director’s loan account (DLA) records transactions between the director and the company. It is a record of either money lent to the company or borrowed from the company. The tax treatment of these transactions depends on whether you have lent money to the company or are borrowing from […]