Interest Free Loans
This benefit is not processed through payroll as per HMRC ruling.
However, you must complete the component details data, if your employee has been given loans where it qualifies as a taxable benefit as it needs to be reported on P11D. All values must be entered as annual amounts as the data will be used in calculations as well as printing on the P11D and Loans Worksheet 4.
| Field | Description |
|---|---|
| Reporting or Processing | Complete this field only if the option at the organization level is Payroll Processing but the benefit will now be reported on P11D. Once it is set to P11D Reporting, you cannot change this back to Payroll Processing for the tax year. |
| Number of Joint Borrowers | Enter a value between 1 and 99. |
| Amount of Outstanding at Loan Start or Tax Year |
Enter a value between 0 to 9999999.99 Enter the balance outstanding at the start of the relevant tax year, or the date when loan was taken. |
| Amount of Outstanding at Loan End or Tax Year |
Enter a value between 0 to 9999999.99 Enter the balance outstanding at the end of the relevant tax year or at the date when loan is discharged. |
| Maximum Amount Outstanding in the Tax Year |
This field is calculated as higher of the previous two outstanding amount fields. You can enter a value between 1 and 9999999.99 to override to the calculated value |
| Total Amount of Interest Paid |
This will be calculated using the official rate of interest set for the relevant tax year. You can enter a value between 1 and 9999999.99 and this is used to override the calculated value. |
| Currency of Loan | Complete this field only if the currency of the loan provided is not in GBP. |
| Number of Complete Tax Month |
Enter a number between 1 and 12 This is the number of complete months in the tax year (6th of the month to 5th of the following month) throughout the term of the loan. |
| Interest Paid on Loan | This is a calculated amount, but you can enter an override value between 1 and 9999999.99 and this value will be considered. |
| Cash Equivalent or Relevant Amount |
Enter a value between 0 to 99999999 The cash equivalent or relevant amount of the relocation expenses borne by the employer. See OpRa Rules. |
For multiple loans in the tax year, complete the component details for each loan. This information is printed on the worksheet on the individual columns provided, for up to five loans.