Director and Employee Beneficial Loans โ P11D and P11D(b) Returns Due by 6 July Each Year
If you’ve provided loans of more than ยฃ10,000 to any directors or employees, these may be considered ๐๐ฎ๐
๐ฎ๐ฏ๐น๐ฒ ๐ฏ๐ฒ๐ป๐ฒ๐ณ๐ถ๐๐. This happens when the loan is employment-related and offered either interest-free or with interest below the official rate.
Under the ๐๐ป๐ฐ๐ผ๐บ๐ฒ ๐ง๐ฎ๐
(๐๐ฎ๐ฟ๐ป๐ถ๐ป๐ด๐ ๐ฎ๐ป๐ฑ ๐ฃ๐ฒ๐ป๐๐ถ๐ผ๐ป๐), a loan is treated as a ๐๐ฎ๐
๐ฎ๐ฏ๐น๐ฒ ๐ฐ๐ต๐ฒ๐ฎ๐ฝ ๐น๐ผ๐ฎ๐ป if:
- It was owed for all or part of the year while the director or employee was employed
- No interest was paid, or the interest rate was ๐ฏ๐ฒ๐น๐ผ๐ ๐ฎ.๐ฎ๐ฑ% (from 6 April 2023)
- It doesnโt meet any of the exemptions listed in ๐๐ฒ๐ฐ๐๐ถ๐ผ๐ป๐ ๐ญ๐ณ๐ฒ ๐๐ผ ๐ญ๐ณ๐ต ๐ผ๐ณ ๐๐ง๐๐ฃ๐
You must report these loans using forms ๐ฃ๐ญ๐ญ๐ ๐ฎ๐ป๐ฑ ๐ฃ๐ญ๐ญ๐(๐ฏ) by ๐ฒ ๐๐๐น๐ after the end of the financial year.
If you donโt treat these loans correctly for ๐๐ฎ๐
๐ฎ๐ป๐ฑ ๐ก๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น ๐๐ป๐๐๐ฟ๐ฎ๐ป๐ฐ๐ฒ, you may not be meeting your reporting responsibilities.
Even if part or all of a loan is repaid within ๐ต ๐บ๐ผ๐ป๐๐ต๐ after your accounting period ends, a ๐ฏ๐ฒ๐ป๐ฒ๐ณ๐ถ๐ฐ๐ถ๐ฎ๐น ๐น๐ผ๐ฎ๐ป ๐ฐ๐ต๐ฎ๐ฟ๐ด๐ฒ could still apply โ so it’s important to stay compliant.
