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Posted Fri, 14 Jun 2024 18:25:21 GMT by Elle
Can you give a hardship loan to your employee while waiting their new tax code to be issued with an understanding that the loan amount will be offset to the tax refund when the tax code is updated. If so will this be subject to tax and NI
Posted Fri, 21 Jun 2024 12:17:41 GMT by HMRC Admin 13
Hi Elle If a beneficial loan, made to the employee, during the tax year does not exceed £10,000 there is no taxable benefit, and you (the employer) do not need to report it on P11D. The beneficial loan would be free of PAYE Tax and NIC if it does not go over £10,000 at any point in the tax year. Thank you

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