How to treat Tax deducted Interest on a Business Bank A/C on Tax return.


P

Path

As a Sole Trader with a Business bank account that pays interest with tax
deducted at source, I asked the local tax office how I should show this on
my tax return.
I was told to do one of the following:

1) Enter Gross interest on section 3.50 and show tax the Bank has already
taken off in Box 3.98

Or

2) Put the Gross, Net and Tax amount in boxes 10.2 - 10.4 along with my
Personal Bank details.

My question is - which is the best way to do this?

Thanks,

Pat.
Please reply to Newsgroup, or take "Spamnote." out to reply by e-mail.
 
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D

Doug Ramage

Path said:
As a Sole Trader with a Business bank account that pays interest with tax
deducted at source, I asked the local tax office how I should show this on
my tax return.
I was told to do one of the following:

1) Enter Gross interest on section 3.50 and show tax the Bank has already
taken off in Box 3.98

Or

2) Put the Gross, Net and Tax amount in boxes 10.2 - 10.4 along with my
Personal Bank details.

My question is - which is the best way to do this?

Thanks,

Pat.
Enter the amount from the P & L in box 3.50 and box 3.71.

Calculate the interest received from 6 April to 5 April - this could be
different if your year end is not 5 April.

Then enter the relevant figures in boxes 10.2, 10.3 and 10.4.
 
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P

Path

Many thanks, that sounds more sensible than other suggestions I've been
given.

Pat.
 

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