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Borrow Money From My Employer
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Cooking_Fat
Posts: 1 Newbie
in Loans
Looking at the Inland Revenue site I saw that it is possible to borrow up to 5K a year from your employer without it effecting your tax code.
What documentation is needed to make such a transaction watertight?
i.e. my employer needs reassurance that they will recover the money should I leave the company.
Cheers
CF
What documentation is needed to make such a transaction watertight?
i.e. my employer needs reassurance that they will recover the money should I leave the company.
Cheers
CF
0
Comments
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It would need to be a proper loan agreement.
Usually there is a clause that you must pay the loan in full if you leave the company. And that they have a right to withhold your final wages to repay the loan (and after that to recover any further balance remaining by usual routes).A smile enriches those who receive without making poorer those who giveor "It costs nowt to be nice"0 -
I am not entirely sure, but loans upto £5,000 from your employer are exempt.
If it was over £5,000, there would possibly be issues with it being a benefit in kind.0
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