Loan from Company and P11D
Loan from Company and P11D
Author
Discussion

Hyper10

Original Poster:

432 posts

185 months

Tuesday 5th July 2011
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I have a loan outstanding from my company, that is I owe it money. I am due to pay interest on it at the HMRC commercial rate. Since it is at a commercial rate, it is not a benefit so I reckon it's not included on my P11D, is that correct, any thoughts are appreciated, thanks

Eric Mc

124,046 posts

281 months

Tuesday 5th July 2011
quotequote all
IF you pay interest at or above the rates set by HMRC it is not a BIK. Obviously, you MUST be paying this interset.

Hyper10

Original Poster:

432 posts

185 months

Wednesday 6th July 2011
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Thank you Eric,your reply is appreciated

JBM78

380 posts

196 months

Wednesday 6th July 2011
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I believe that there is only a benefit when the loan exceeds £5,000.

KelWedge

1,282 posts

201 months

Wednesday 6th July 2011
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I Think Loans to Directors if kept below £5000 in the Tax year, are not shown on P11D and can be interest free.

Eric Mc

124,046 posts

281 months

Wednesday 6th July 2011
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Bed aware of Section 419 though - which can be more costly than the P11D requirements.