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Loan Benefit in kind

RachelRachel Trusted RegularFMAAT, AAT Licensed Accountant Posts: 349
Hello

A while ago my client and her husband borrowed money from his company (he is an employee) for a month as a bridging loan. As it is joint loan and mortgage they are wondering is the benefit in kind can be shared or whether the whole amount has to be on his P11D? There was no interest on the loan.

I believe that they can't but just thought I would check in case anyone knows different.

Many Thanks

Comments

  • RachelRachel Trusted Regular FMAAT, AAT Licensed Accountant Posts: 349
    Don't worry there is no way round.

    Thanks anyway
  • jamesm96jamesm96 Experienced Mentor Registered Posts: 523
    If only he's an employee and not his wife also then it'd be difficult to argue. If the company had paid half to him and half to her I guess the employer could record it as a small loan to an employee and a small sundry loan to individuals, but any PAYE inspector would instantly see why they'd done it and probably assess the full benefit anyway.
  • RachelRachel Trusted Regular FMAAT, AAT Licensed Accountant Posts: 349
    No there are rules stating specifly that it cannot be split
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