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CT61

I need to prepare a CT61 for a company paying a director £5000 net. I understand the CT61 has to show £6250 gross with £1250 tax deducted and £5000 net

What figure do I show in the P&L as interest paid, is it the net of gross figure and is this CT deductible in full?

If gross is the journal simply Dr Interest CR Bank with the £6250??

Thanks in advance everyone

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By DMGbus
16th Jun 2011 13:36

P&L a/c = gross

If interest has been agreed as £6,250 before tax, then the entries that I would make are as follows:

£5,000.00  DR P&L a/c / CR bank a/c [cheque to lender] [or DLA credit]

and

£1,250.00 DR P&L a/c / CR bank a/c [cheque or electronic payment to HMRC]

The £6,250 would then be deductible from trading profits (as a P&L a/c expense) if this amount of interest is at a commercially justifiable (as in not excessive) rate.

 

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16th Jun 2011 13:46

CT61

thanks very much for your reply- much appreciated

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