Ex-employee loan write off

Ex-employee loan write off

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Ex-employee has an outstanding loan, which the company decides to write off some months later.

I believe the sum will be taxable under s62 ITEPA and also charged to Class 1 NICs. 

Presumably the sum should be grossed up and put through the payroll or should the sum written off be recorded on a P11d for tax purposes?

Thanks for any comments

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By hje
11th Oct 2015 21:28

Some guidance

found here: https://www.gov.uk/expenses-and-benefits-loans-provided-to-employees/what-to-report-and-pay

might be of use: "You always have to report and pay on loans to employees that you write off, whether or not they are classed as beneficial loans"

 

 

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