We usually go to the bank for a payday loan only when we can not count on financial assistance from a close relative. The second option is much more beneficial for many people, because you do not have to worry about interest, margins or a small delay in repayment of liabilities. Of course, lending money in the family can be different. Therefore, it is worth considering your decision well and finding out how to borrow money in the family. Is it necessary to write down the contract or report it to the tax office?
Borrowing money to your loved ones and the law
Before deciding to borrow money from someone from a spouse, child, parent or grandfather family, it is worth knowing that you usually do not have to report this fact anywhere. The condition is that the amount borrowed from one person within five years should not exceed PLN 9,637. This does not mean, however, that you can not borrow larger sums from the family. In addition, such payday loans do not have to be taxed under the condition that they will be documented and reported to the tax office. Therefore, it is not a necessity to pay tax on civil law transactions in the amount of 2%, regardless of the amount of the payday loan. However, you must submit a PCC-3 declaration to the tax office regarding the tax on civil law transactions and document the receipt by the borrower of money to his bank account or postal order. It is worth noting here that this option is not available if you borrow money between your parents-in-law, son-in-law and daughter-in-law.
An important issue when preparing a transfer or postal order is to include the word payday loan in the title (in the rubric or in the form). Then, the tax office will treat this document as proof of a family payday loan. To submit this declaration to the tax office, the borrower has fourteen days from the date of the act. Making a transfer or signing a payday loan agreement. One more important issue is that if the tax office determines the performance of a payday loan in the form of a payday loan of over PLN 9,637 within five years, which has not been reported, it may request payment of a civil law transaction tax of no 2%, but up to 20% .
As for further relatives and friends, you can borrow up to 5,000 PLN from one person and 25,000 PLN from different people over three years. Then the payday loan is exempt from tax.
A payday loan from a family – what to watch out for?
A private payday loan can actually be concluded in any company and have the form of a gentlemen’s agreement or even oral contract. The safest solution, however, will be to write a contract in writing, for example for evidence purposes. You never know what the future will bring. It may happen that there will be problems with repayment of the payday loan, which will go beyond the financial sphere and turn into family problems. When compiling a private contract, the parties to the proceedings must be precisely defined, that is, indicate the personal details of both the borrower and the lender. The contract should also contain information on the payday loan amount and the date of its return. Depending on the decision of both parties, it may be a precisely indicated date or a specified number of days / weeks / months. It is also recommended to specify and enter in the contract the manner in which the amount borrowed is to be returned. It can be returned in full or spread over several installments – equal, decreasing or growing.
Lending money to relatives is so that sometimes you can not even deny them financial help, but you need to be moderate. You need to assess the financial possibilities of such a person and borrow them as much as they will be able to pay back. This is not only about the financial security of the lender, but also about the fact that mutual friendship does not suffer as a result of such a transaction. In the case of small amounts up to 500 zlotys, the word itself can be sufficient, i.e. an oral contract. However, at higher amounts, you should even write off the contract or at least take a receipt. When writing a payday loan agreement, it is also worth entering the degree of kinship that links the lender to the borrower. Of course, you can not forget to sign contracts. However, there is no need to go to a notary with them to certify them.
So what can an example of a private payday loan agreement contain?
When signing a payday loan agreement with a family member, you must save: the date of its conclusion, names and surnames, personal ID numbers, addresses and PESEL of the lender and the borrower. Then enter the amount (also in words), the amount of the payday loan and for what period it is borrowed (for the period from day to day). It should also be noted that the payday loan is not interest-bearing and will be transferred by bank transfer to the borrower’s account. The parties may also declare that the repayment date of the payday loan may change with the written consent of both parties. In the case of a delay in the return of the payday loan, the borrower will be obliged to pay interest in the amount determined by both parties in the form of x% per day. It should also be noted that the tax on civil law transactions will be paid by the borrower. It is also worth mentioning that the contract was made in two identical copies and each party received one of them. At the end, the borrower and the lender should sign signatures confirming that they have read the terms and conditions of the contract.
Is it possible to withdraw from a private payday loan agreement?
The rule is that the lender is obliged to pay the amount specified in the contract, but it is possible to evade this obligation in the event of withdrawal from the contract. It is possible in a situation where the lender can justify his decision with a doubtful repayment of the payday loan due to the bad financial status of the borrower. However, this is not possible if the lender was already aware of the borrower’s bad financial situation / could easily find out. Often, the person decides on the choice because he failed to obtain a payday loan with a debt collector . You can therefore withdraw from the payday loan agreement, but the borrower’s bad financial status must be at the moment of refusing to transfer money to the other party.