Company has invested £2m cash. held under 12 month Deposit plan.
Period of investment from 1 Jan 2011 until 31 December 2011.
Interest receivable during period will be £82,000. Paperwork provides that interest will be paid under deduction of income tax. Therefore £16,400 will be deducted and £65,600 was actually received Jan 2012. (no idea why this has been set up like this)
Company accounting period for the period to 30 June 2011.
I would ordinarily bring in £42,000 as gross interest receivable (non trading, D111 credit). What about the credit? Can I take credit for income tax not yet suffered? or do I need to wait until the period in which the company suffers the tax.