BIK Preferential Loan

BENEFIT IN KIND - PREFERENTIAL LOANS 

For further information on Benefit in Kind, click here

To access this utility go to Employees > Update employee benefits > Click Loans

• Enter Amount of Preferential Loan

The amount entered should be the original loan amount if it was made this tax year or the loan amount outstanding at the start of the tax year.

If the period of the loan is for less than one tax year, you should enter the average outstanding for the portion of this tax year that the loan is active.

• Enter Interest rate being charged
• Enter Start date of loan
• Enter End date of loan if the loan expires before 31st December
• Click Update file and show calculation of notional pay

* Please note: The loan benefit will be added to the employee's gross income each pay period to ensure that the correct PAYE , USC & PRSI are charged.

SUBSEQUENT LOANS

*Please note: The original loan should NOT be removed. Simply enter the end date of original loan and start the new loan in the section provided.

• Enter End date of original loan
• Enter Amount of new Loan

The amount entered would normally be the original loan if it was made this tax year or the loan amount outstanding at the start of the tax year.

If the period of the loan is for less than one tax year, you should enter the average outstanding for the portion of this tax year that the loan is active.

• Enter Interest rate being charged
• Enter Start date of loan
• Enter End date of loan if the loan expires before 31st December
• Click Update file and show calculation of notional pay