I overlooked the quarterly payments rules in a CT case and have a PI claim against me (& quite rightly so!). The late payment interest of £8K charged to my client is allowable for CT and thus the claim is reduced by 26%. When the claim is paid out (roughly £5K) is that taxable?. If so, the agreed claim needs to be increased by the tax chargeable.
08th Dec 2012 12:35