Thats what I originally thought. However this seems to refer specifically to banks, etc. whereas the interest was paid by the company, no banks etc involved.
Hmm, on my tax return software under Interest received, there is a section for "Private Loans and Others". That is where I would put it. Pretty simple really.
Thats what I originally thought. However this seems to refer specifically to banks, etc. whereas the interest was paid by the company, no banks etc involved.
Hmm, on my tax return software under Interest received, there is a section for "Private Loans and Others". That is where I would put it. Pretty simple really.
Don't waste much energy on it. Ingrates will always be ingrates. I would say don't give a refund, give the usual bland response to the clearance and move on. File a SAR too, they generally get ignored, but if you file you can't later be told off for not doing so.
In the good old days, when dividends came with a tax credit, any profit above £50,000 meant Ltd company was always the best option and got better the higher the profit.
Since the change in how dividends are taxed, its more like a sine wave, as you have discovered.
BUT
As others have mentioned, deciding which vehicle to use for a business isn't just about the tax, is it?
Given the annoying new legislation coming in forcing all Ltd companies to publish their P&L accounts, I foresee fewer people taking that option.
There might be penalties for late submission of partnership returns, if that happened, but I have never known anyone get penalised for being late registering for SA.
The first time you file a VAT return late (works best if its a big one) and they get a penalty they'll buck their ideas up....
I also sometimes file whatever is there in Xero or wherever, so its not late. You can always pick up the rest next time....... This doesn't work, of course, if they've done sod all...
My answers
As others have said, if he's paid you just ignore him.
Hmm, on my tax return software under Interest received, there is a section for "Private Loans and Others". That is where I would put it. Pretty simple really.
Hmm, on my tax return software under Interest received, there is a section for "Private Loans and Others". That is where I would put it. Pretty simple really.
Don't waste much energy on it. Ingrates will always be ingrates. I would say don't give a refund, give the usual bland response to the clearance and move on. File a SAR too, they generally get ignored, but if you file you can't later be told off for not doing so.
Always file the CT600A. If the client doesn't pay the tax, that's their problem. They will get it back eventually if they clear the loan.
Hmm, its been like this for a while.
In the good old days, when dividends came with a tax credit, any profit above £50,000 meant Ltd company was always the best option and got better the higher the profit.
Since the change in how dividends are taxed, its more like a sine wave, as you have discovered.
BUT
As others have mentioned, deciding which vehicle to use for a business isn't just about the tax, is it?
Given the annoying new legislation coming in forcing all Ltd companies to publish their P&L accounts, I foresee fewer people taking that option.
Huh? Tax season is only tax season because that's how everyone's played it over the years.
Where I work we're doing tax returns all year round so if we need to talk (Ha, ha) to HMRC we need them to be there......
1% pay rise, easy now......
Are they asking if you set it up as implied by this post, or why you set it up as noted in your OP?
It doesn't make a lot of difference, granted, as its not your problem anymore as you moved them on......
There might be penalties for late submission of partnership returns, if that happened, but I have never known anyone get penalised for being late registering for SA.
The first time you file a VAT return late (works best if its a big one) and they get a penalty they'll buck their ideas up....
I also sometimes file whatever is there in Xero or wherever, so its not late. You can always pick up the rest next time....... This doesn't work, of course, if they've done sod all...