Originally posted by Zimmy
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As I understand the situation, your P11d does not need to be amended because there is no BIK to report.
HMRC say, no P11d is required if any of the following exceptions apply:
HM Revenue & Customs: Loans provided to employee
•You provide a loan in the normal course of a domestic or family relationship - for example, if you provide a cheap loan to a family member who works for you. This only applies to loans you make as an individual, not to loans made by a company you control (even if you are the company's sole owner and employee).
•The combined outstanding value of your loans to an employee is less than £5,000 throughout the whole tax year.
•Your loan to an employee is for a fixed and invariable period and at a fixed and invariable rate that was equal to or higher than the official interest rate when the loan was taken out.
•You offered the same type of loan under identical terms and conditions to the general public as well as to your employee (this exception applies mainly to commercial lenders).
•You provide a 'qualifying loan' all of the interest on which qualifies for tax relief - follow the link below for technical
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In my opinion it is irrelevant that you didn't pay the interest, it was applied to the loan taken and repaid in full.
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