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Deloitte - start dates?

gideon2000uk

I just rang the annoying freephone recruitment hotline, and it says the start dates have been confirmed, and that graduate trainees will be contacted shortly about thier specific start dates.

Has anyone been contacted yet? I've tried to get through on the phone but I keep getting answering machines...

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Reply 1

fubu

Hey!

I was having exactly the same trouble finding out about starting info. The start date is Thursday 6th September. Other than that I know nothing. However, I was told that we should receive our joining packs near the end of the month. I'm interested to see what my salary will be since I changed office from the one I got my offer letter from!

Reply 2

coupsy

fubu

The start date is Thursday 6th September.

The start date isn't the same for all offices it varies from office to office, i know i start the week before. Have you checked the graduate website yet, if you log into the account there is a link to a new joiners section in which is a section containing start dates for all the offices and tells you what you will be doing in the first week.

There are also a few forms to fill in and a list of a few of the flexible benefits in more detail. Unfortunately it doesn't tell you how much you will get as that is being posted out

Don't want to list all the start dates for all the offices as there are too many but PM if you cant get on and i can look

Coupsy

Reply 3

Greyhound02

I'm starting in London on 13th September. The start dates are on the new joiners website. If you don't have access to it, contact grad recruitment.

Reply 4

fubu

My login for the graduate recruitment system doesn't work anymore :frown:

how annoying. Does anyone know if the residential training course will be done on a regional office basis?

Reply 5

gideon2000uk

fubu

My login for the graduate recruitment system doesn't work anymore :frown:

how annoying. Does anyone know if the residential training course will be done on a regional office basis?

Make sure you click on the link for 2006-07. The new recruitment season has started, so you need to go back to the old logon.

Reply 6

fubu

"We are delighted that you will be joining us shortly. There are a number of action points and reading which we require you to undertake before you join us. All relevant information will be displayed to you shortly via this webpage and you will receive an email from graduate recruitment to notify you when this is accessible."

It's said that since last september....oh well.

Reply 7

gideon2000uk

Yeah... Same here! Sigh!

I'm going to ring them again tomorrow I think.

Reply 8

Apoc

13th Sept for the Reading office...

completely off topic but is anyone applying for the interest free loan? Since its a taxable benefit (>5000), i wanted to know how much tax will we have to pay on that?

Reply 9

gideon2000uk

I already took the initial £1000 and it was a lump sum. Since it is a loan - why does it get taxed?

I'm taking it out because it is better than a commerical loan. It just goes up with inflation so I might just put it in a high interest savings account.

I found out that I start at the 30th August - Cambridge.

Reply 10

fubu

From what I remember from my limited knowledge of income tax, I think the tax effecient amount to take out would be £5000 and no more, otherwise you get taxed on the full amount (e.g. take £5000 and you pay no tax on it, but take £5001 and you pay tax on £5001, not just the extra £1). If you take more than £5000 then the amount just gets added to your taxable income and you'd pay tax on it at the appropriate rate.

Reply 11

Apoc

fubu

U sure about that? If thats the case then a £7000 loan effectively becomes £4700 approx after tax/NI deductions (assuming gross pay is £27K + 7K). Thats alot...

Reply 12

gideon2000uk

Yeah... I think we need to have a little accountants discussion about this. I know bugger all... Any takers! :P

Reply 13

fubu

Okay after having a long hard think I remember what the deal is on loans, I got a tad wrong earlier!

The Deloitte graduate loan is interest free and therefore a beneficial loan which is treated as a benefit in kind if the amount borrowed exceeds £5000. If the loan is classed as a benefit (e.g. >£5000) then the benefit is calculated as the difference between the HMRC official rate of interest (which is 5% at the moment I think) and the rate of interest paid on the loan (which would be 0%).

Therefore if you borrown £7000, the benefit would be (0.05-0.00) x 7000 = £350 - this amount gets added to your income from employment and therefore gets taxed!

Reply 14

coupsy

Apoc

U sure about that? If thats the case then a £7000 loan effectively becomes £4700 approx after tax/NI deductions (assuming gross pay is £27K + 7K). Thats alot...

I am not sure myself about this, i may just be talking a load of rubbish but i dont think its that bad, i was reading the government website (http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10021716) and they said

Loans at low interest rates

You may have to pay tax on this benefit if your employer lends you more than £5,000 interest-free, or charges you less than the official rate of interest on a loan. The value of the benefit you'll have to pay tax on is usually the difference between:

* the interest you actually pay
* the interest you would've paid at the official rate

You may also have to pay tax on the benefit if your employer lends money to one of your relatives.

You won't have to pay tax on the benefit of an interest-free or low interest loan from your employer if the total of all loans provided in a year is less than £5,000 or less.

So the way i read it is that you have to pay tax on the interest that you would have had to pay not on the ammount you borrowed. These are just made up numbers some of you will probablly correct me latter but assume the government says the loan would have charged 10% interest and tax would be the middle band about 22% this would mean that the tax on this would be 2.2% of the loan amount or £154. In addition to this 2.2% is much less than inflation so you would be better in an isa

Also not sure whether you need to pay intrest on the full amount, the tax office http://www.hmrc.gov.uk/manuals/eimanual/EIM26200.htm says theres are 2 ways of working out the equivalent cash, these being

the average amount of the loan (or aggregate loan, see EIM26180 onwards) calculated by reference to its maximum opening and closing balances (see EIM26212) at the beginning and end of the tax year. ie if we took out the £1000 loan and a £7000 this would really be £4000 to pay intrest on

or

* for each day in the tax year that the loan (or loans if they are to be aggregated, see EIM26180) is outstanding
* dividing the official rate for that day (see EIM26104) by 365 and
* applying that to the maximum balance (see EIM26212) on the loan for that day (or the total of the maximum balances if loans are aggregated).. If assume the loan was £1000 from start tax year to August and paying back at maximum 36 instalments of 7000/36 = £195 you have
April, May, June, July @ 1000 = 4000
August @ 7000 =7000
Sept @ 6805
Oct @ 6610
Nov @ 6415
Dec @ 6220
Jan @ 6025
Feb @ 5830
Mar @ 5635
Which averages to £4545 which at the 2.2% rate is about £100

Reply 15

Apoc

cheers ppl... this makes much more sense. So moving the discussion forward, where is the best place to invest this amount? ISAs seem like a good option but i think they are limited to £3000 or am i wrong? Has anyone got any experience of ISAs/ savings accounts that they would recommend? thanks !

Reply 16

gideon2000uk

Yes. You can only invest £3000 every tax year.

I would recommend putting therest in a high interest savings account with ING Direct or someone like that.

Reply 17

Apoc

found something while searching....

http://www.icesave.co.uk/

6.2% AER ...

Reply 18

heartofengland

check out the icici online bank account, i read on mse money that its currently the highest paying online account.

Reply 19

gideon2000uk

Can someone clarify this taxable loan thing...

I'm not an accountant yet. The general message is that I should take £5000 in total... i.e. £1000 + £4000, right?

The second post confused me.