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Is there a CT61 equivalent for a soletrade

Is there a CT61 equivalent for a soletrade

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Client has a property business, he has an investor who has made a loan, he will be paying interest on that loan and currently be paying it gross....but should he be deducting tax?

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By thisistibi
31st Jul 2012 14:01

Only companies

Deduction of income tax on interest is only done by companies.  

http://www.hmrc.gov.uk/manuals/saimmanual/SAIM8010.htm

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By DMGbus
02nd Aug 2012 14:04

Foreign lender

Many years ago I recall a case where a property was purchased by a UK individual in the USA funded by a USA mortgage.

UK HMRC said must deduct tax at source on the interest paid to a non-UK lender.

USA lender said no and threatened mortgage foreclosure if tax was deducted.

Spoke to USA embassy - useless.

Eventually resolved when I found a technical error in HMRC's original assessment (assessed under a section referring to partnerships rather than individuals as I recall and too late for HMRC to correct the assessment when I pointed out the tech error).

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