How does the interest paid by the company to the director for money the director has loaned the business work? (Directors Loan Account) I have funded the company via a directors loan, and understand I should charge the company interest on that money. However, the company isn't making money yet, and isn't expected to break even and have positive cashflow for upto 5 years (latest forecast) . Is it acceptable that I'm loan more money to the company so that it is funds to pay me the interest due? Secondly, I have no income at the moment. Nothing from the business or elsewhere. Provided the interest paid to me is less than the personal tax free threshold, am I exempt from tax on the interest received? If so, how does this tax free on interest received works as I am understanding the business must pay HMRC the basic rate on the interest first before it pays on the directors loan.