I have a corporate client who in past years has received bank interest net of 20% tax. I'm not sure why this happened as usually companies receive bank interest gross.
However, after asking the bank to start paying the interest gross they have now refunded £4k of tax deducted over the past few years. I do not understand how they can do this as surely the tax is question should have been paid to HMRC by now?
My main problem is how do we show the position on the CT600 as there does not appear to be a box for this scenario and putting a negative figure in the box for tax suffered results in it failing the online submission tests.
My conclusion is to submit the CT600 online ignoring the £4k of tax and to send in a manual amendment to the CT600 to take into account the £4k tax suffered but I would be interested to hear if anyone else has differing views?