As an employer, you may often be willing to lend company money to a director or employee. This could be to help them pay for a season ticket to commute to work, to help an employee relocate to a new area, or to help a valued employee get over a financial difficulty.
There are, however, some rules that must be followed. For example, if the loan is to be repaid in instalments from salary, the employee must either sign an authorisation for such deductions before the loan is made or have an equivalent provision in their employment contract.
A full guide covering the rules regarding loans made to employees or directors by a company, with effect from 6 April is available to clients in our Secure Client Area or by contacting Vicki Harper- email@example.com.