Loan notes payment of principal and interest

Loan notes payment of principal and interest

Didn't find your answer?

Client has received loan note principal payment from employer (subject to CGT). Also has received interest and has a letter from a big 4 firm (employer's accountants) stating that an agreement has been made with HMRC that the interest payment should have been tax free.

The big 4 firm has advised that, to reclaim the tax deducted on the (now agreed) tax free interest payment the employee will have to complete a paper return and complete the additional info pages.

However, any ideas where to put this interest payment that has had tax deducted but should be treated as tax free and the tax reclaimed.

Anybody else dealt with anything remotely similar?

Thanks in advance.

Replies (2)

Please login or register to join the discussion.

By johngroganjga
23rd Oct 2014 21:49

Surely if tax has been deducted in error by the employer it's the employer's problem to sort out, starting with making good the underpayment to your client.

Thanks (0)
avatar
By Manchester_man
23rd Oct 2014 22:11

I agree, plus it would be far simpler.

I've not got the actual letter from the big 4 firm with me but I'll provide more info tomorrow when I'm in the office.

Thanks (0)