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
-
Loan Charge settlement offers begin to land
HMRC has begun sending formal settlement offers to individuals and employers with outstanding Loan Charge liabilities, alongside detailed new guidance explaining how offers will be calculated and how long recipients have to respond. What’s the full story?
-
The hidden income tax benefit of marriage
You recently got married and a relative joked that you can save lots of money because of the tax breaks for married couples. As a newlywed are you entitled to a reduction in your income tax bill?
-
September deadline to opt out of winter fuel payment
Pensioners whose income is over £35,000 have only days left to opt out of the 2026/27 Winter Fuel Payment and avoid having it recovered through the tax system. What do you need to know?