Infotype 45 contains two additional fields for the beneficial loans functionality for Great Britain. These are the fields under the group heading Beneficial Loans:

• Loan category
• MIRAS indicator

They are used to specify the type of loan the employee has taken out, and whether MIRAS (Mortgage Interest Relief At Source) is applicable.

There are six different types of beneficial loans which have to be reported on the P11D form:

The loans are designated as being qualifying or non-qualifying loans. This attribute is needed to consider whether a specific loan should be taken into account when determining whether the total balance outstanding exceeds £5,000, the tax exemption limit.

The user decides if a certain loan is MIRAS applicable.

An employee can claim interest relief when provided with a cheap or interest-free housing loan to the extent that the loan does not exceed £30,000. MIRAS relief is given for the first £30,000 of home loans.

An employee will still be taxed on the difference between any interest he or she paid and interest at the official rate. The employee will then, however, be able to obtain tax relief on the loan as if he or she had paid interest at the official rate (usually the same as normal mortgage rates). The employee is therefore given tax relief on the amount of interest he or she actually paid, as well as the additional amount of interest not actually paid due to the loan being a cheap or interest-free loan.

This information is relevant for the P11D form.

The Payroll Accounting component reads this infotype together with the following:

The benefit calculation method is specified on this infotype for the person concerned. All this employee's loans are then calculated by the method selected here.

Other information required by the Payroll Accounting component is held in tables. The necessary information can be maintained in Customizing for Payroll: United Kingdom under beneficial loans:

• Create a loan type

You define the loan types to be used in your company in table T591A.

• Create loan conditions

You specify the conditions under which a loan is granted in table T506D. This table holds the agreed interest rates and payment dates.

• Set up official rates

Tax authorities publish the official rates at irregular intervals. You therefore need to maintain table T5G70 as and when this is necessary.

Information relevant to beneficial loans is also contained in the following tables:

• Table T5G71

Loan categories have the attribute qualifying and non-qualifying. This is specified in this table. No customizing is required.

• Table T511K

This table contains a constant LEXRT, which defines the limit of £5,000, up to which beneficial loans are tax free.