A company director reviewing financial documents with a calculator and laptop, highlighting HMRC rules on directors’ loan accounts and the 30-day rule.

Directors’ loan accounts – The 30-day rule

Entrepreneur
September 10, 2025•1 min read

From 6 April 2025, HMRC’s official interest rate (ORI) on employee loans rose to 3.75%, compared to mortgage rates of 4.74% (29 August 2025). Loans from the company are interest-free but must be repaid within nine months and one day after the accounting period, or the company faces a 33.75% tax charge.

Anti-avoidance “bed and breakfasting” rules apply if £5,000+ is repaid and re-borrowed within 30 days. A further tightening from the 2024 Autumn Statement prevents using group companies to recycle debt.

Loans under £15,000 to full-time employees with no material interest may be exempt, but the £15,000/£5,000 intention rule can still apply. Repayments made via salary, bonus or dividends avoid anti-avoidance rules. For loans above £10,000, consider charging interest.

Directors’ loan account rulesHMRC 30-day rule loansBed and breakfasting loansDirector loan anti-avoidanceHMRC loan interest rate 2025Corporation tax loan chargeTax on directors’ loans
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