Season Ticket Loan

danfrancis

Hi Guys,

I have a couple of options with my season ticket this year, but not sure which one I will be better off with....

Work have a 0% interest loan for season tickets that gets paid back over a 12 month period.

I either can get a season ticket for £1500, or £2100 (rough estimates). Overall, which one will mean I end up with higher take-home and more of my salary in total?

Any help would be much appreciated!!!

antonic

As you have posted this on the Tax Board I am assuming that you are asking if there is any tax to pay on this loan ?

As its below £5000.00 the answer is none.

(I am a CS who has taken out a 12 mth interest free loan for £1200 and there are no tax implications for me, the monthly payments are taken out of my GROSS pay monthly.)

danfrancis

I put it under tax, as I thought it was the best fit, in terms of work.

I wanted to know if there were any tax implications, as the loan comes out of gross salary. So therefore am I better off having a larger or smaller loan taken out of my gross salary - which will mean that over the next tax year, I will pay less tax (as it is taken out of gross pay) and thus have a higher take-home?

Lokolo

The loan won't come out of gross salary, it will come out of net. There are no taxable implications for interest free loans offered by companies when under £5,000.