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Cash Advances - BIK?
stressedoutmumof1
Posts: 1,483 Forumite
in Cutting tax
If an employee regularly has a cash advance at work (ie £300 per month which is deducted from his wages at the end of the month) and various other adhoc ones - am I right in thinking if the total amount of cash advances at the end of the tax year exceed £5000 then it will need to be declared on a P11d as a Benefit In Kind and his tax code will be amended next year. Or do cash advances not count as loans?
Thanks for any advice.
Thanks for any advice.
Squares knitted for my throw ~ 90 (yes!!! I have finally finished it :rotfl: )
Squares made for my patchwork quilt ~ 80 (only the "actual" quilting to do now :rotfl:)
0
Comments
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It's no benefit in kind.
I'm not sure if cash advances are anyway. But even if they were, it wouldn't be in this instance as the loan is never more than £5000.
The loan is only for £300, and then it's 'repaid' at the end of the month and then a fresh one is taken out the next month. So even if it were a true loan, it never goes above the BIK threshold.0
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