After two years without change, HMRC have confirmed an update to the official rate used for the calculation of beneficial loans in respect of assessing against benefit value As such, from the 6th of April the rate has increased from 2% to 2.25%. This has been expected as we’ve seen increases to the Bank of England interest rate over the last 12 months.
The rate must therefore be considered against any loans issued to staff and where interest is being charged at less than the prescribed rate, if the accumulative value in the tax year is over £10,000 it must be returned as a benefit on the P11D process.
More details of the change can be found here:
