2-Hamed was granted a loan of £40,000 by his employer on 1st April 2019 and interest is payable on the loan at 1% p.a. On 31st May 2019, Hamed repaid £5,000 and on 30th November 2019 he repaid a further £15,000. The remaining £20,000 was still outstanding on 5 April 2020. The official rate of interest is 2.5 % p.a. for the tax year 2019/20. What will be the taxable benefit on beneficial loans as per the average method of interest calculation? a. £
2-Hamed was granted a loan of £40,000 by his employer on 1st April 2019 and interest is payable on the loan at 1% p.a. On 31st May 2019, Hamed repaid £5,000 and on 30th November 2019 he repaid a further £15,000. The remaining £20,000 was still outstanding on 5 April 2020. The official rate of interest is 2.5 % p.a. for the tax year 2019/20. What will be the taxable benefit on beneficial loans as per the average method of interest calculation? a. £
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2-Hamed was granted a loan of £40,000 by his employer on 1st April 2019 and interest is payable on the loan at 1% p.a. On 31st May 2019, Hamed repaid £5,000 and on 30th November 2019 he repaid a further £15,000. The remaining £20,000 was still outstanding on 5 April 2020. The official rate of interest is 2.5 % p.a. for the tax year 2019/20. What will be the taxable benefit on beneficial loans as per the average method of interest calculation?
a. £308
b. £750
c. £435
d. None of the options
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