HMRC has announced that the official rate of interest will remain at 2.25% for the 2024/25 tax year, despite the Bank of England Base Rate currently being 5.25%. This official rate is used to calculate the income tax charge on the benefit of employment-related loans and the taxable benefit of some employment-related living accommodations. In the past, these rates fluctuated with the base rate and changed several times a year, but HMRC has recently fixed the rate for the entire tax year, simplifying the calculation of the taxable benefit.

Employers reporting beneficial loans on form P11d for the 2023/24 tax year should use the 2.25% official rate. This charge applies to loans exceeding £10,000.