If your director’s loan accounts at the year-end date are overdrawn, then you may need to pay extra tax. However, if you pay the loan within 9 months and 1 day of the year-end, you do not have to pay tax. In the other scenario, if a loan is not paid after 9 months and 1 day of the year-end, any overdue amount of a director’s loan account, the company pays an additional 32.5% corporation tax.