Revenue Enquiry--Interest Due?

Revenue Enquiry--Interest Due?

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1)Will interest be charged and is this deductible.?

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david

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By User deleted
24th Apr 2005 01:16

it depends....

I agree with Ian that interest will be charged automatically. Deductibility depends on whether your client is an individual (self-employed) or a company.

If your client is an individual, interest charged for late payment is not deductible. However if your client is a limited company, it is deductible. Conversly, a repayment supplement (interest) paid to a limited company is taxable.

http://www.hmrc.gov.uk/manuals/ctmanual/CT10000/46_0019_CT10219.htm

Freddy

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By IanRiley
20th Apr 2005 11:57

Yes
Interest will be due automatically under self assessment if any tax due is paid late. It will not be tax deductable (the same as if they were paying you interest it would not be taxable.

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