Share this content
0
241

Director's beneficial loan reporting requirements

If interest is paid at the HMRC official rate, is there still a P11D reporting requirement?

Hi. I know this is a topic that is done to death but the more I look into it the more confiused I get. If a director pays interest on their overdrawn loan account (>£10k) at the HMRC official rate and the interest is paid by 19 July, is it still necessary to report the loan on a P11D, albeit there is no Class 1A for the company? I have read that if sufficient interest has been paid, then the director has not received a beneficial loan, and so there is nothing to report, hence no P11D required. Thanks in advance for any help.

Replies

Please login or register to join the discussion.

avatar
26th Mar 2019 16:10

Broadly, if the rate of interest charged is at a higher rate or equal to the official rate, no report is required. There are a few other exemptions you might be interested in;
https://www.gov.uk/expenses-and-benefits-loans-provided-to-employees/wha...

Thanks (1)
Share this content