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IRIS automatically computes the benefit using the 'normal' method which uses an average of the loan and an average official rate. If you wish to compute using the precise method, this calculator may be used.
The results from the loan calculator must be manually entered in the 'value' field on the benefit in kind screen. Make a note of the result shown in the cash equivalent of loan area before clicking Close.
There is a step by step guide to using this calculator.
The loan must be broken up into time periods during the fiscal year. A new time period is required whenever:
The rate of interest changes; or
The loan outstanding changes (up or down).
Enter the amount, interest rate and dates for each time period, clicking on Add loan benefit and then the [4] button between each period. For an example see the step by step guide. After adding in all the time periods, the total interest will be shown beside the Add loan benefit Remove loan benefit options.
Deduct any interest paid by the employee to arrive at the taxable benefit, which should be entered in the value field of the benefit-in-kind (types 1 or 2). Note that the information entered in the loan calculator is not stored by IRIS.
