Thanks.

As a director if you have an overdrawn director's loan account, the company will have to pay a Section 419 tax charge of 25% of the outstanding balance at the year end in which you go overdrawn. If the overdrawn balance is £60,000 then you will have to pay £15,000 in Section 419 tax. That will be due for payment nine months after the company's year end. If the loan is reduced in part or repaid in full, some or all of the Section 419 tax can be reclaimed. Take a look here for information on overdrawn director's loan account.

As a director, you will have to pay tax on the benefit of having the loan. If the loan balance remains the same for three years, the benefit will be £2,400 per tax year. Take a look here for more information on beneficial loans. The rate of interest used is 4% but this can change in line with general interest rates.

Let me know if you have any further queries.