Loans - work out the value to use

The easiest way to work out the value to report is to use one of the following electronic tools - they'll do the calculations for you:

HMRC's free 'Online Return and Forms - PAYE' service
the interactive form P11D (use the 'with save' option) in HMRC's Basic PAYE Tools
many commercial payroll software packages

Information you'll need

You'll need to have the following information to hand:

the date the loan was made available, if during the tax year
the date the loan was discharged, if during the tax year
the currency in which the loan was made
the number of complete months in the tax year throughout which the loan was owing
the maximum balance of the loan on the day it was taken out or on the first day of the tax year, whichever is later
the maximum balance of the loan on the day the loan was discharged or on the last day of the tax year, whichever is earlier
the official rate of interest - for a list, use the link at the end of this section
the amount of interest paid by your employee during the tax year

You can also work the figure out manually using the step-by-step instructions in the P11D Working Sheet 4 which you can find using the link below.