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Hello and welcome to the site. Thank you for your question.You have requested me to answer your question ...Please advise what your question is?many thanks
i received some interest free loans from an employee benefit trust set up by my employer before end 2010 totalling around 500k.
i had not declared these on my tax form as i was originaly told that loans are not declarable.
then last year after finding out that some of my colleagues had declared these loans, the revinue sent me and my colleagues a national insurance demand, to which we were instructed by our employer to challenge, and our employers also challenged the demand, which has been noted by the revinue.
my previous accountant did not say that any tax was due on these loans, however my current accountant says that i may have to pay some interest.
what in your opinion is the correct interpretation and for 500k what would the tax be
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sorry the last bit, with regard to the 500k 'loan' if it is written off will that have to be declared and if so will it be taxable?
at the moment I have some non voting shares in the company, which I may be able to sell back to the company when I retire in two years.
The loans (I think 6 separate ones during 2008/until before end 2010) was made via Montpellier in the isle of man, using money sent by my employer, which I had to apply for and give a reason for the loans, which was for home improvements, however the loan scheme has now been transferred to a company in jersey as Montpellier were raided a few years ago!
the loans are long dated, however they will be written off if I leave the company, move abroad or die. (or all three!).
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am I right in saying then that you believe that if I can arrange for the loans to be written off whilst I am an employee, then I will not have to pay any income tax on the loans? only the national insurance?
many thanks, XXXXX XXXXX I will have a chunk of cash to pay back then, thank you for your help I will rate the comments positive