I have a new client who made a commercial loan in Feb 2015, with first repayment of capital and interest a month later in March - loan over 12 months.
The company year end is 28 Feb.
No CT61 has been completed so I know that the first thing I need to do is get hold of a few CT61s. I know the return periods are usually last day of March, June, Sep & Dec.
Do I need to calculate interest due from date of loan to year end and then 1 - 31 March and do a split return. OR Do I just use the date interest paid (as that is the date the tax would be deducted) and then I can use the return periods above. Am I over-thinking it?!! Or not thinking about it enough. Am taxed out today!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
When you say the new client made a loan I assume that they lent money rather than borrowed money.The CT61 should be prepared by the recipient of the loan, as they are the ones who are withholding tax on the interest payment to your client, to support their payment of tax to HMRC.
Hi Gordon What a burk I am....Ive just realised how confusing my question was!
I will re-phrase......I have a new Limited Company client - they have borrowed money from a director who is charging them a commercial rate, so my client is the recipient of the loan and will need to pay HMRC the tax element on the interest paid.
(The Director is including the receipt of interest on his personal tax return).
-- Edited by Cheshire on Wednesday 27th of January 2016 07:11:02 PM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Unfortunately you cannot download copies of CT61, you have to apply either as the Company or agent and will be sent a form. After submission you will be sent a form to cover the next period. You can however download the helpsheets ( if you have not already). If the helpsheets do not answer your queries I will try an give a more detailed answer (but not before midnight on Sunday :0)
If interest and capital repayments have already been made then the Director will need to repay the tax which should have been deducted at source on the interest paid each quarter and this should be paid to HMRC and the CT61s filed. Interest may apply to late payment of tax.
The tax element as deducted, by the company, from the repayments to the director, but nothing has been done with them nor reported. I need to do that now, so I've ordered the forms. My question is around the dates....can you advise Hannah, per the notes above?
-- Edited by Cheshire on Wednesday 27th of January 2016 10:49:07 PM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Unfortunately you cannot download copies of CT61, you have to apply either as the Company or agent and will be sent a form. After submission you will be sent a form to cover the next period. You can however download the helpsheets ( if you have not already). If the helpsheets do not answer your queries I will try an give a more detailed answer (but not before midnight on Sunday :0)
Regards Gordon
is something keeping you busy then Gordon? Lol. Only 4 days to go!!!!
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ok Ive read the guidance notes and it does talk about accounting period and I know this company's doesnt match the required quarter dates, but there is nothing on the notes that says the dates are based on actual interest paid date v calculation date. Im guessing its the former, but I know I shouldnt guess! Maybe the forms themselves when they finally arrive will tell me....or Gordon will after the 31st and after he has woken from the 'big sleep'
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
My understanding is that the CT61 details should match the accounting period. So if your clients year does not match the CT61 return periods you will need to submit 2 CT61s for the Jan-Mar period (1 for Jan-Feb and a 1 for March). Payments can be made online but the returns have to be by post within 14 days of the period end. I am fortunate in that my client has a 31st Mar year end and interest is paid quarterly so just 1 figure for each return and no overlaps
Thanks Gordon, i was tying myself in knots as to whether it was the date the actual interest was paid (and therefore the date the tax was deducted) that determined what date it was reported.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
