• Find us on:

Employee loans: law and HMRC rules

This page can be viewed with a Bronze Library Subscription. For £4.99 you can access the information and guidance here for 1 month.

Some employers offer their employees low interest or interest-free loans.  This page provides information on the different types of loans that employers may make and their tax treatment. Contents include loans to employee shareholders, short-term loans and advances, loans without tax liability, those that are written off and interest.

What is an employee loan?
Employee loans are not liable to PAYE tax, but may be taxable as a benefit under Part 3, Chapter 7 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) if the loan is more than £10,000.00 during the tax year.
HMRC r...

You can access this page with a subscription. Follow the library link above to subscribe.


The information and content on this website is provided for general information purposes only and is not intended to constitute legal or other professional advice. Legal information or content on this website relates only to the laws of England and Wales. You should not take any actions based on information found on this website without first seeking appropriate legal advice with respect to your specific matter. No representations or warranties are made about the suitability, currentness, comprehensiveness and/or accuracy of the information and other content contained on this website. It should be noted that legal information and content can rapidly become out of date and we give no undertaking to keep this website up to date. All liability for any loss or damage of any kind which may be suffered as a result of accessing and using the information and/or content of this website is hereby excluded to the full extent permitted by law.