Tax at source on Interest

This requirement for deposit-takers e.g. banks and building societies to deduct sums representing income tax from the interest or other returns they pay on certain savings, investments and alternative finance arrangements are removed in relation to interest paid or credited on and after 6th April 2016.

In other words, you’ll receive the interest on your bank and building society interest gross!

However if your company pays you interest, on say a directors loan account that is in credit, they still need to deduct tax from the payment, pay it over to HMRC and complete the necessary CT61 form – having ensured you have all the company paperwork up to date including minutes etc.

Give the office a call 01280 875250 if you need help

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