Directors loan increased to 10k? (before BIK)
Discussion
Hi,
Been reading that the cap has been upped from 5k to 10k for 2014/15 for close company before any BIKs kick in.
But I can't find this on any official gov website, and looking at this link https://www.gov.uk/directors-loans it is stating the max loan is 5k.
Can any one confirm or deny?
Thanks
Been reading that the cap has been upped from 5k to 10k for 2014/15 for close company before any BIKs kick in.
But I can't find this on any official gov website, and looking at this link https://www.gov.uk/directors-loans it is stating the max loan is 5k.
Can any one confirm or deny?
Thanks
Confirm.
It's not specific to directors but all Directors and Higher Paid Employees i.e. the normal category for individuals for which a P11D would need to be completed.
Note that this limit is a BIK limit for "low interest" or "interest free" loans. It is nothing to do with Penalty Corporation Tax that a company might have to pay in relation to a director or a connected person or disclosure requirements in company accounts.
It's not specific to directors but all Directors and Higher Paid Employees i.e. the normal category for individuals for which a P11D would need to be completed.
Note that this limit is a BIK limit for "low interest" or "interest free" loans. It is nothing to do with Penalty Corporation Tax that a company might have to pay in relation to a director or a connected person or disclosure requirements in company accounts.
http://www.hmrc.gov.uk/budget2013/tiin-5143.pdf
The limit was increased from 6 April 2014 in response to the need for employers to be able to make advance payments to employees who have to pay large amounts of money for annual commuter rail tickets. In some cases these now exceed £5,000 and it was causing a problem for certain employees.
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