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Benefit - H. Interest free and low interest loans - Payments

Use

This method applies the appropriate 'official rate' to the balance of the loan on a daily basis throughout the period involved. It is more complex, but is precise.  Basically, this alternative method of calculation involves  

• Dividing the appropriate official rate by 365, and  
• Applying that to the total of the maximum amounts of the loan (or loans)  outstanding on each day in the tax year. In effect the total amounts of the maximum balances on the loan (or aggregated loan) for each day are converted into the equivalent balance for one day to which one days interest charge at the appropriate official rate is then applied. Any interest paid on the loan for the tax year is then deducted to arrive at the chargeable benefit for that year.

This screen is used to calculate the loan benefit using the precise method.

Path

Assign Benefits > Interest free and low interest loans > Add New Loan > Payments

Fields Available

• Date of Payment: Enter here the date on which the payment was made.
• Amount Outstanding: This field displays the amount of loan that is yet to be repaid by the employee.
• Rate of Interest: This field displays the official rate of interest for the loan.
• Amount of Interest: Enter here the amount of interest for the loan.
• Amount of Payment: Enter here the amount of payment made by the employee.
• Loan Balance Amount: This field displays the balance of the loan amount.
• Action: The various tasks associated with the data in each row will be displayed here. For example, Save, Edit, Remove, etc.

Associated Tasks

• Edit: To edit the payment details, click on the Edit button in the appropriate row.
• Remove: To delete the payment details, click on the Remove button in the appropriate row. A confirmation message appears. Click on OK to continue.
• Save: To save the details, click on this button.

Related Topics

Interest free and low interest loans - Add