Director's loan account record
A taxable benefit in kind may arise where a director is provided with a loan, either interest free or at a rate of interest below HMRC’s official rate. Use this document to calculate what, if anything, you need to declare to HMRC.
Make a note
Where a cheap rate or interest-free loan is no more than £10,000 at any time during a tax year, there is no taxable benefit. But where it exceeds this the whole loan is subject to the benefits tax rules. It’s therefore important to monitor loans to ensure that they don’t go over the limit, so complete a record for all loans taken out by employees and directors.
Note. All loans made to the director by the company must be added together to check whether the £10,000 limit is exceeded.
Related Topics
-
Electronic VAT return and payment due
-
Received a P800? Check how HMRC has used your allowances
Some HMRC P800 tax calculations can produce too much tax where a taxpayer has several different types of income and allowances are not allocated in the most favourable way. People with employment or pension income alongside savings, dividends or other income are particularly at risk here. Could HMRC be charging you too much?
-
Deadline to notify HMRC that you have a tax liability
This website uses both its own and third-party cookies to analyze our services and navigation on our website in order to improve its contents (analytical purposes: measure visits and sources of web traffic). The legal basis is the consent of the user, except in the case of basic cookies, which are essential to navigate this website.