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4 articles
An overdrawn director’s loan account is rarely a paperwork problem alone: it can trigger a benefit-in-kind charge, a 33.75% corporation tax charge under s455, and an unwelcome conversation at year-end. This review sets out the £10,000 threshold, a worked example and a practical pre-year-end checklist for UK owner-managers.
Many micro-companies lose tax relief through a missed eligibility test or thin records, not through bad faith. This plain-English review covers five reliefs worth checking in 2026 and flags the heavily marketed claim most small firms should approach with caution.
Most small UK companies discover the true state of their record-keeping only when a buyer, lender or investor issues a due diligence request. A disciplined records room is not administrative decoration: it shortens transactions, reduces price adjustments and supports the valuation case at exit.
HMRC's £150 annual function exemption can keep a Christmas celebration free of benefit-in-kind tax, but the detail matters. This checklist helps UK employers plan the 2026 festive season, document costs and avoid a payroll surprise.