Most loans offered by the University to employees are administered and authorised by HR Division e.g. Hardship and the Travel to Work Scheme. Departments can not make loans to employees.
Further details can be found on the HR web pages
The provision of a loan to an employee at a reduced or zero rate of interest is a taxable benefit unless under £5,000.
However, all loans received should be included separately on Appendix A of the P11D form issued by Payroll detailing:
- the balance outstanding at the beginning and end of the year; and
- the rate of interest payable.
Loans under £5000 - Are not regarded as a taxable benefit and will not be reported on the P11D.
Failure to repay a loan - Should an employee fail to repay a loan, HM Revenue & Customs will be informed by payroll and the entire balance may be treated as a taxable benefit.
Loan Fund II - Any existing agreements are not a taxable benefit and do not need to be reported on the P11D as the interest on the loan is at the market rate.