Benefit in kind - staff mortgage

Lotak

Now that I think about it.

https://www.thesalarycalculator.co.uk/salary.php

The best way of doing it would be to go back to your first ever year of having the loan, then put your annual salary from that year into a salary calculator excluding the loan, then do it again including the taxable value of the loan (should be in your P60, but would be Loan * ORI for that year).

The tax charge is simply the difference in tax with and without the loan (ignore NI)
You can do that for each year.

It may not be exact, but it will be pretty close

E.g.
Say your salary is £42k and your loan is £200k and for 17/18 year (2.5%)
Put in £42k into calculator.
Tax charge £6100
Taxable value of loan = £200k * 2.5% = £5000

Put in £47k into calculator
Tax charge £7500
So you're paying £1400 in tax.
That's an "interest rate" of 0.7%. (1400/200000 = 0.7%)

Since your employer charges you interest, you'd deduct that from the ORI (as explained earlier)

normanna

TrickyDicky101 wrote: »

How do you come to that conclusion when you don't know what rate she's paying?

Assumed base rate for staff - thats what Lloyds Group get. Should have included my assumption.

Lucy._2

Thanks, I’m printing my historical P11D s off today and will have a look when I get home. Thank you