Entering Complex/Director's Loans

The P11D Organiser allows you to choose a number of ways to calculate the interest on loans:

• Official Monthly
• Actual Daily
• Official Daily
• Actual Monthly

In a majority of cases you would use the Official Monthly method, but there are some occasions this method doesn't offer the 'best case' for the employee - these are where there are fluctuating loans, such as a Director's Loan. In these cases the loan balance can increase sharply part way through the year and is brought back down before the end of the year.

Either HMRC or the employer can elect for an alternative precise method of calculation, where the actual balance on each day is multiplied by the official interest rate in force on that day. This is the reason why you have to report the maximum balance of each loan on the P11D form.

Adding a Complex Loan

To add a complex loan, navigate to the appropriate employee, and then select Section H, for interest free and low interest loans:

On the next screen, either select an existing loan description, or click on the Add button in the lower left corner to create a new one.

On the next screen, enter a description for the loan (such as Director's Loan), then select Actual Daily from the drop down menu for Method:

This will bring up the Loan Balance Rates screen, where you can enter as many dates/days of balances as required for the loan. To add a new data point, select Add, to edit an existing one, highlight the line, and click Edit.

In each case you enter a date and a balance, the P11D Organiser will then perform the calculation based on the number of days applicable. When you have completed entry of the data, click the Ok button. You will now be back at the Loan Overview screen.

If you wish to edit any of the data entry points, from the Loan Overview screen, select Actual Daily again from the drop down, and it will open the Loan Balance Rates editor.