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
-
Income sharing trouble for separated couple
After a couple separated one spouse received income from letting the property she jointly owned with her estranged spouse. HMRC taxed all the income on her. Was it right to do so or should her spouse have been taxed on half the income?
-
How to handle workers aiming to "Slide Away" to an Oasis Concert
The Oasis Live ’25 UK reunion tour starts in Cardiff on 4 July 2025 and concludes in London on 28 September 2025. With ticketless fans keen on obtaining last-minute tickets and ticketed fans eager to get to the gig for when the gates open, this could have an impact on staff productivity and timekeeping. How can you tackle these issues?
-
Is getting your business to pay tax efficient?
You were recently involved in an online discussion about the tax consequences of putting the cost of a celebratory meal for the business owners and staff through the firm’s books. Will doing so save or increase tax overall?