Please enable JavaScript.
Coggle requires JavaScript to display documents.
Loans to Employees and Use of Assets (Loan to Employees (Averaging Method,…
Loans to Employees and Use of Assets
Loan to Employees
Averaging Method
(Loan from start of year + loan at end of year)/2 x 3%
Strict Method
Outstanding loan amount x 3%
£10000 maximum for no taxable benefit
Apportion depending on how many months in the year the loan applies to
ITEPA 2003 ss.180-183
Use of Asset
Apportion depending on how many months assets were available for
Annual value must be multiplied by 20% against original value
The benefit is the higher of:
annual value of the use of the asset
the original sum paid by the employer against the value when first made available
ITEPA 2003 s.205
Transfer of Asset
For cars and houses; MV of car less payments made by employee
The benefit higher of:
MV when transferred to employee
MV when first available less any costs for use of asset
ITEPA 2003 s.206
Computer Use
Must be deducted by 20%
If 100% business use, not a taxable benefit
If there is private use, must take % from calculation