Child Tax Credit and Season Ticket Loan - HELP!

soylent_pink

If it is on form P11D it is a beneficial loan and the P11D value (not the full loan amount) would be declared as a benefit in kind.

If it is on form P60 it is treated as a salary advance and must be declared as income.

There seems to be some confusion on this thread - you are describing the amount as a loan which would be a benefit in kind. The company appear to be classing it as a salary advance from the information you have given.

Bottom line - if it is on the P60 it is income for tax credit purposes.

SkyeKnight

krisskross wrote: »

But her salary is actually £19 PLUS commuting costs. She still has the £19K left after she has repaid the amount for her travel costs each month.

Forget seeing part of her salary as a loan. The whole of the £28k is her salary but they just advance her enough in a lump sum to purchase a yearly season ticket. She does have the obvious choice of declining to have the lump sum, having the £500 or so each month and buying herself a monthly ticket. We all have to pay the cost of getting to work out of our earnings.

No, the OP has now been very clear on the matter in several posts:
"OK, if my wife won £10K on the lottery (would be nice) and used that for her travel and not the loan from her employer then her salary would be £19K."

I must admit I'm still not quite convinced but only because it would be madness to pay over £7k in commuting costs for a £19k job (leaving a net salary of about £8k after tax/NI!!!!) I can only assume that this is some sort of training post and the salary is expected to rise considerably in the future (or the OP has got muddled and the salary really is £28k).

Anyway, it seems to be agreed that the salary on the P60 is the one used for Tax Credit purposes - if this is wrong it's no good complaining to HMRC - complain to the accounts team at work who need to get her a new P60 with the correct figures on.