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.
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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?
6y ago#3If 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:))
Correct again Lucy!!
As I mention in several lectures, Noah you have to be very careful to correctly interpret the information in the question - in this instance the difference between the amount of loan provided and the assessable benefit computed on that loan
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