HMRC's Beneficial Loan Interest Rate for Directors Increases to 2.25% in 2023/24
17/05/2023

With the Bank of England base rate increasing to 4.25%, employees and directors receiving loans from their company may benefit. HMRC’s official rate of interest on "beneficial loans" has increased from 2% to 2.25% from April 6, 2023. This low rate could mean directors can opt for a company loan instead of a dividend. But, the loan must be repaid and unpaid loans remaining after 9 months have tax consequences for the company.

Interest Rates of Loan Interest