Best card to spend 9k and repay over 12mths?

ssray

Hi,

My annual season ticket is just over 9k pa, I normally get a loan from work and end up getting taxed on the loan,
Would it be worth me getting a cashback card and doing it on that?
assuming i pay back 12th per month

Cheers
Ray

InsideInsurance

The best option would be a 12 month 0% APR card if you can find one that will give you a high enough limit.

Any card, cashback or not, that isnt 0% APR I suspect wont be economical. At a standard 19.9% APR you'd be paying £917 interest.

Given the official loan rate is only 4% for taxation then I suspect you are paying under £150 on your tax for the loan (if I remember how the tax is paid on loans)

opinions4u

Any 0% card for 12 months or longer that will give you such a limit. Or any cashback card that would give you such a limit if you could repay it in full within a few weeks, before interest is charged.

If you would fall in to paying interest on a credit card, the tax bill would be cheaper.

Try your bank first.

I suppose you could borrow less than £5k on an employer season ticket loan (taking it out of tax if you have no other loans from your employer) and put the rest on a 0% card with a lower credit limit.

mrsbrayne

The exemption threshold is extending to £10,000 for employee loans from April. Therefore from this date there will be no taxable benefit.

http://www.hmrc.gov.uk/budget2013/tiin-5143.pdf

opinions4u

mrsbrayne wrote: »

The exemption threshold is extending to £10,000 for employee loans from April. Therefore from this date there will be no taxable benefit.

http://www.hmrc.gov.uk/budget2013/tiin-5143.pdf

Good spot!