The loans screen

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The loan information is contained on 3 tabs:

 

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Details:

 

Account

Enter a description, name or reference

Interest paid

Enter the amount of any interest on the loan paid by the employee in Sterling

Date loan was made

Enter the date that the loan was made. The default entry will be before year start

Total borrowers

If the loan is in joint names, enter the total number of borrowers, including the employee

 

There are two methods for entering data around loans. Where the transaction method box is unchecked you can enter details in the Simple method boxes.

 

Max balance @ date

Enter the opening balance of the loan on the date that it was first made, or on 5th April 2016 if made before the year start

Max balance in year

Enter the maximum balance of the loan at any time in the year

Closing balance @ date

Enter the maximum balance on the date that the loan was discharged, or on 5th April 2017 if the loan continued after the year end.

Discharge date

Enter the date that the loan was discharged The default entry will be after year end

 

Checking the transaction method box will deactivate the Simple method. You should use the Transactions tab to record the loan information.

 

Transactions:

 

Opening bal @ date

Enter the opening balance of the loan on the date that it was first made, or on 5th April 2016 if made before the year start

Add transaction

For each new transaction affecting the balance of the loan add a new record and enter the following details

Date: Enter the date on which the transaction took place

Amount: Enter the amount of the transaction. This should be in the same currency as selected for the loan on the Details tab

Transaction: Select the type of transaction from the drop down menu; Repayment, Waiver or Loan Increase

Note: Where you have entered a loan waiver for a beneficial loan as a transaction type, the waiver will be taken into account for the loan benefit calculation and also appear on the P11D as an Other Benefit. Where you have loan waivers which are not associated with beneficial loans, or which are to do with loans using the Simple method, enter the information on the employee’s Benefits tab only.

 

Overrides:

 

The gross loan benefit and Class 1A National Insurance. Any interest paid entered on the Details tab will be deducted from the overridden benefit value.

 

Where an employee has only a partial liability to Class 1A, the program will calculate the amount of the liability on the proportion of the benefit from taking the number of days in the year that the employee was liable to NI over the number of days in the year that the beneficial loan was outstanding. A warning will appear, and you may override the Class 1A if there is a more appropriate calculation.