Director's loan account record
A taxable benefit in kind may arise where a director is provided with a loan, either interest free or at a rate of interest below HMRC’s official rate. Use this document to calculate what, if anything, you need to declare to HMRC.
Make a note
Where a cheap rate or interest-free loan is no more than £10,000 at any time during a tax year, there is no taxable benefit. But where it exceeds this the whole loan is subject to the benefits tax rules. It’s therefore important to monitor loans to ensure that they don’t go over the limit, so complete a record for all loans taken out by employees and directors.
Note. All loans made to the director by the company must be added together to check whether the £10,000 limit is exceeded.
Related Topics
-
Delay salary to save tax
As a company owner manager, you decide when to take income from your business. If that’s your only source of income, tax planning is relatively simple but it’s trickier if you have other sources. What’s the best strategy to improve tax efficiency?
-
Loan written off: are you in HMRC’s crosshairs?
HMRC is writing to directors that took a loan from their company that was later written off or released. What should you do if you receive a letter?
-
Cutting the cost of a company car
You want to help your young son replace the ancient car he currently drives. The plan is for your company to buy it but for the running costs to be met by your son. That’s fine with him but is there a more tax and cost-effective alternative?
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.