Employer loan

purdyoaten

M635 wrote: »

Thanks for the all the replies I think I'll just call them.




Also just to clear it up I'm not trying to avoid NI/Tax.


Trying to work out how much my wages will be short the month its written down as I'm presuming its going to be quite a hefty % taken from my standard monthly salary, so if I take the offer I need to make sure I'm covered for my normal outgoings if I'm say £400 short for the month.

For my sins, I am ex-hMRC and recently retired from tax consultancy. I would expect that the loan will be recorded on this years P11D. You will have an underpayment of £1000 for 2013/14 (assuming you are a basic rate taxpayer). By the time HMRC picks this up, it will be most of the way through 2014/15 tax year. I would expect that the underpayment be collected over the 2015/16 tax year by changing your tax code - additional tax £83 odd per month. If this is too much, ask for it to be collected over two years.

M635

purdyoaten wrote: »

For my sins, I am ex-hMRC and recently retired from tax consultancy. I would expect that the loan will be recorded on this years P11D. You will have an underpayment of £1000 for 2013/14 (assuming you are a basic rate taxpayer). By the time HMRC picks this up, it will be most of the way through 2014/15 tax year. I would expect that the underpayment be collected over the 2015/16 tax year by changing your tax code - additional tax £83 odd per month. If this is too much, ask for it to be collected over two years.

Thanks for the reply, exactly what I was looking to find out as I presumed HMRC would take the whole amount owing in one month, not too worried if its just taken from my salary over X number of months.
Thanks.

purdyoaten

M635 wrote: »

Thanks for the reply, exactly what I was looking to find out as I presumed HMRC would take the whole amount owing in one month, not too worried if its just taken from my salary over X number of months.
Thanks.

Just two further points:

a) I HMRC 'discover' an underpayment they cannot 'code it out ' in the year of discovery, even if for an earlier year - hence my previous post.

b) It is important that HMRC do not assume this to be a recurring benefit. Experience tells me that they probably will and you could find it being included in your code every year.