White Collar Consultants Limited

So much more than tax

01952 780 220

accounts@wcc-ltd.co.uk

What is a CT61

01/01/2018

Since April 2016 most banks no longer deduct Income Tax from interest payments made, however this does not apply to other interest payments made.

For example, some owner managed company’s directors lend the company considerable amounts. That means the directors loan accounts are in a credit. The company may elect to pay the directors interest on these loans.

When interest is paid the company would pay 80% to the director and the basic rate of tax 20% to HMRC. In this case the company would have to notify HMRC that the payment had been made and pay over the tax to HMRC.

The company would complete a CT61 and submit to HMRC. This would be completed at the time of each payment, therefore to avoid red tape payments are advised once and year at the end of the fiscal year.

For more information or help filing your CT61 follow the link to HMRC or contact us at White Collar Consultants

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