A directors loan account write off is a legal process through which a business formally acknowledges that a loan owed to (or from) a director cannot be repaid. A Director's Loan Account, or DLA, is an account that reports all transactions between the director and the company.Writing Off Loans:. If a loan cannot be repaid and is written off, it is treated as untaxed income for the director. Complete a form for each County in which business was written.