Loans made to employees
Sun, Apr 4, 2010
HMRC have announced the official rate of interest to be used to calculate the value of a benefit in kind on a loan made to an employee.
From April 6th 2010, the official interest rate for beneficial loan arrangements is 4.00%.
The rate for the current (2009/2010) tax year is 4.75%.
Employees are liable to pay tax on the interest portion of a loan made to them, calculated at the above official rate, when the balance of the loan exceeds £5,000 during any point of the tax year.
Leave a Reply