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How is withholding tax paid to HMRC?

Client is withholding tax at 20% on interest payments made to individuals.

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Our Ltd client has a couple of loans from private individuals; one is UK resident, the other US resident.  The company is paying them interest on an annual basis and withholding tax at 20%.  Our client has asked us how they make payments of the withheld tax to HMRC?  I've looked into this and whilst I've found the various tax manuals detailing what they should withhold and the various rules as to how an exception can be claimed, I can't find anything on how to actually make the payments to HMRC.

Can someone point me in the right direction?

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By Matrix
24th Apr 2022 13:38

Form CT61.

Doesn’t your client’s US lender want to claim the treaty rate?

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By Paul Crowley
24th Apr 2022 17:52

Fair play to your client for knowing about this
Very rare for a client

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By David Ex
24th Apr 2022 22:15

uknick wrote:

I've looked into this and whilst I've found the various tax manuals detailing what they should withhold and the various rules as to how an exception can be claimed, I can't find anything on how to actually make the payments to HMRC.

If you Google “How is withholding tax paid to HMRC?”, CT61 is the second “hit”.

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By DKB-Sheffield
24th Apr 2022 22:36

I actually read the question differently to others. I assume the CT61 has been filed and the OP needs to know how/ where to pay this. This should be detailed on the payslip issued to the company. The reference number will be shown on the payslip - don't just use the CT UTR.

It is, however, 12 months since I last filed a CT61 so, if this this has changed, I apologise!

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By uknick
25th Apr 2022 15:42

Thanks for the CT61 steer.

I don't think our client has done anything about the interest payments, other than deduct the 20%. As far as I know, they only knew about it when one of the investors told them.

With regard to the US investor, I'll pass on your comment to our client so they can discuss it with their investor.

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