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sir why would a beneficial loan of 2600pounds included as a benefit under class 1A NIC? beneficial loan as long as below 10000pounds is exempt benefit as per the rules. and exempt benefits are not considered under Class 1A NIC.
Class 1A will only be charged on the amount of beneficial loan. If there is no taxable benefit there is no beneficial loan assessment to compute – the figure you have quoted above appears to be the computed “beneficial loan” NOT the amount of the loan!
sir i do not understand what you are trying to convey. can you elaborate on this a bit more?
If the amount of the LOAN is no more than £10,000, there is no benefit. The £10,000 exemption applies to the LOAN itself, not the benefit charge on that loan. If the amount of the LOAN is £2,600, there is no benefit and therefore no Class 1A NIC. If the BENEFIT (ie the amount of the loan x interest saving) is £2,600 (or any amount for that matter) it is assessable and therefore liable to Class 1A NIC
@lucy23 thank you so much for the answer. It makes a whole lot of sense. Really appreciate:))
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