Employee Loans Tax Free Increase

If an employer provides an employee / director with an interest free or under market rate loan, a benefit in kind charge is raised based on a notional interest rate (3.25% for 2013/14). However, where the loan is below the exempt limit throughout the tax year, this does not have to be reported.

As of 6th April 2014 the minimum level of borrowing has been increased to £10,000 (previously £5,000).

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