P11d's - interest free loans
Discussion
Hi,
Just hoping someone who is in the know might be able to help clear something out. How much extra tax do I have to pay each month/year for an interest free loan through work. To put some context to it; it's an interest free loan of £50,000 paid back in full within 6 months. I do this twice a year.
I understand, but could be wrong, is it's the balance of £50,000 x 4.75% (which is the HMRC rate I think) = £2,375 x 40% (tax band) £950 a year, £80 a month. As there are two of these, it will cost £160 a month?
Please could someone confirm as a colleague believes it's much more than who does the same thing, but I was sure the above is how it is worked out and what I've budgeted for throughout the year.
Thanks.
Just hoping someone who is in the know might be able to help clear something out. How much extra tax do I have to pay each month/year for an interest free loan through work. To put some context to it; it's an interest free loan of £50,000 paid back in full within 6 months. I do this twice a year.
I understand, but could be wrong, is it's the balance of £50,000 x 4.75% (which is the HMRC rate I think) = £2,375 x 40% (tax band) £950 a year, £80 a month. As there are two of these, it will cost £160 a month?
Please could someone confirm as a colleague believes it's much more than who does the same thing, but I was sure the above is how it is worked out and what I've budgeted for throughout the year.
Thanks.
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