Sam is provided with a loan, on which he pays interest at 1% per annum, by his employer. The loan was 100,000 when it was taken out on 6 April 2020 and he repaid 40,000 of the loan on 6 August 2020. What is Sams beneficial loan benefit for the tax year 2020/21 assuming the average method of calculation is used?

Select one:

a.

1,800

b.

1,000

c.

900

d.

1,067