Staff Mortgage - BIK

anfo

Hi there,
My husband and myself recently got a mortgage. I work for a bank and got a staff mortgage but as a first time buyer I am not fully aware on how much I need to pay in benefit in kind monthly.
Here are my figures based on what I read in this forum:
Total balance: 300,000 (the first payment took place on the 2nd of Nov)
£169,840.00 with interest rate 0.1% (this is the staff mortgage)
£130,160.00 Fix term mortgage with interest rate 3.3%
HMRC official rate: 2.25%
Tax Band: 20%

300,000 * 2.25% = 6.750

Actual Interest

169,840.00 * 0.1%= 169.84 plus 130,160.00 * 3.3% = 4,295.28

TOTAL= 4,465.12

Difference b/w the 2 = 2,284.88

Tax 20%= 456.976

456.976/12 = 38.08/ month

Not sure if this correct or if my calculations are completely wrong! I would really appreciate if someone can help.
Many thanks

Jeremy535897

I don't think you aggregate the loans in this way, even if both are from the same employer. Therefore I think that the benefit is £169,840 at 2.24% = £3,804, which at 20% is £760.80, or £63.40. This does assume that you are not paying off any capital though.

anfo

Jeremy535897 said:

I don't think you aggregate the loans in this way, even if both are from the same employer. Therefore I think that the benefit is £169,840 at 2.24% = £3,804, which at 20% is £760.80, or £63.40. This does assume that you are not paying off any capital though.

Where do you find the 2.24%? What I know from the bank is that the BIK applies to the total amount, not the £169,840 concessionary staff limit alone and this will apprear in my P11D form in July.

Jeremy535897

Sorry, my mistake, should be 2.25% less 0.1% ie 2.15%, not 2.24% (2.25% less 0.01%). I don't know why the BIK applies to the total amount, as the second loan appears to be commercial, and is above the official rate anyway. The employment manual says you don't aggregate loans except in very special circumstances. See:
https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim26180

anfo

I will need to contact the HR then and figure it out as I wasn't aware of this. Many thanks for the info.

Jeremy535897

It may well be that it is structured carefully so that it is really just one loan. Most mortgages are made up of separate (some often trivial) components. HR will know the answer.