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Directors Loan Account

  • Magna Carta Bookkeeping
  • May 4
  • 1 min read

What is a Director’s Loan Account?


If you’re a director of a limited company, a Director’s Loan Account (DLA) is something you need to understand.


Simply put, it tracks any money you take out of the business that’s not salary, dividends, or expenses — or money you put in to help the company.


There are two main uses:


  1. You lend money to your company — it owes you.

  2. You borrow money from your company — you owe it.



Handled well, a DLA can be a flexible tool. But if you get it wrong? You could face tax penalties or trouble with HMRC.


Key tip: Keep accurate records and know your limits (especially if borrowing over £10,000).


Need help managing your DLA? That’s what we’re here for!



 
 
 

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