P11D - details of loan when nil cash equivalent

[Assume we're discussing 2010/11]

For income tax, beneficial loans are automatically calculated with reference to complete tax months, unless the employee or HMRC elect by 31 January 2013 to use the daily basis (EIM26242). HMRC suggest the election is made by an employee by using the daily calculated figures on their tax return.

For Class 1A, beneficial loans are calculated with reference to complete tax months, unless the employer knows that this election was made by 22 July 2011 (NIM16684).

In the cases where a loan is not outstanding for a complete tax month, the cash equivalent of the loan is £nil, unless the election is made.

(Of course, if the total of the loans to the employee never exceeded £5,000, they are disregarded on form P11D.)

My questions are therefore:

1) Should the monthly basis always be used on form P11D, unless before 22 July 2011 the employee has submitted a tax return claiming the daily basis, or (unlikely) HMRC give notice to use the daily basis?

2) Does the answer to (1) depend on any potential major loss of income tax and/or Class 1A to HMRC?

3) Do the details of any loan (exceeding £5,000) where the cash equivalent is £nil need to be reported on form P11D?

My answers are (1) Yes, (2) No, (3) Yes, but I am interested to hear others' views.

TaxManDan